NEW YORK (TheStreet) -- Hasbro (HAS) - Get Report, the company behind popular toys and board games Monopoly,Play-Doh and My Little Pony, reported better-than-expected third-quarter earnings of $1.31 a share, beating Thomson Reuters' $1.28 a share estimate, on $1.37 billion in revenue.
Though revenue in the U.S. and Canada fell 5% to $735.6 million, international sales jumped 11% to $582.7 million. Growth in emerging markets such as Latin America and the Asia-Pacific increased 22%. By sector, net revenue in the boys category fell 17%, remained flat in games, and increased 29% in the girls category.
The Rhode Island-based company expects strong revenue growth in the all-important fourth quarter, as consumers spend more during the holiday season.
The toy and games manufacturer is also committing to a cost savings initiative which will realize $100 million in annual savings by 2015.
"These strategic steps are increasingly important as we continue to operate in a challenging consumer environment in developed economies," said CEO Brian Goldner in a statement.
Shares jumped 7.4% to $51.72, contributing to an overall rise of 42.3% in the year to date.
TheStreet Ratings team rates HASBRO INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about its recommendation:
"We rate HASBRO INC (HAS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
- You can view the full analysis from the report here:HAS Ratings Report
Written by Keris Alison Lahiff.