Transformers New Trilogy Set to Lift Hasbro and Viacom
NEW YORK (TheStreet) -- Since its initial release in 2007, the Transformers series has been one of the highest-grossing movie franchises.
After three successful films from 2007 to 2011, Transformers is getting a new trilogy with the initial film coming this summer. Two publicly traded companies have a lot to gain.
Box Office Mojo, an industry Web site, is projecting that Transformers: Age of Extinction will gross $285 million in domestic markets and $750 million in international box office.The movie being partially set in China is cited as once reason why the foreign take could be so high. The last Transformers movie grossed $165 million in China, one of 11 countries where the movie grossed at least $20 million. In its last fiscal year ended in September, Viacom reported a 1% decline in total revenue to $13.8 billion. Filmed entertainment revenue decreased 11% to $4.3 billion, despite hits such as World War Z, Star Trek and G.I. Joe. The filmed entertainment segment also saw operating income decline 28%. The addition of Transformers in the current fiscal year should be a welcome sign for investors. In its last fiscal year ended on Dec. 29, Hasbro reported revenue of $4.08 billion, almost flat with the prior year. In its first quarter, revenue rose 2%, led by strong international and entertainment and licensing revenue. Hasbro should see a strong second half from the box office and toy revenue from Transformers: Age of Extinction. Hasbro shares are up 69% since the first movie hit the big screen in 2007. On Thursday morning, they were trading at $55.60, up 45 cents. Viacom shares were trading at $84.84, up 2%.
>>Read More: Whole Foods Investors Were Warned >>Read More: Kass: Facebook-WhatsApp Fallout At the time of publication, the author had no position in any of the stocks mentioned. Follow Katje on Twitter @chriskatje This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.