Games, Toys Bouncing Back at Hasbro

The shares perk up after its third-quarter release.
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Toy company

Hasbro

(HAS) - Get Report

said its quarterly profit rose 23%, helped by strong sales of Transformers and Trivial Pursuit, two of its core brands.

Shares of the company were climbing 46 cents, or 2.2%, to $21.10 in morning trading.

Including the effects of an accounting change, Hasbro earned $68.5 million, or 38 cents, in the third-quarter ended Sept. 28, compared with $55.8 million, or 32 cents a share, a year earlier.

Before the accounting change, the Pawtucket, R.I., based-company would have earned $85.8 million, or 48 cents a share. On this basis, analysts were calling for 42 cents a share. Earnings before taxes, depreciation and amortization were $170.3 million, compared with $142.7 million last year.

Sales rose 18% to $971.1 million from last year's $820.5 million. Hasbro said U.S. sales rose 23%, while revenue in its international unit increased 13% in local currency and 22% in U.S. dollars.

"We are pleased that all major segments are performing well, with international delivering the anticipated improvement associated with revenue growth and cost reductions," said David Hargreaves, chief financial officer. "However, with much of our business yet to ship, absent the impact of exchange rates, we have not significantly changed our expectations for our full-year 2003 performance."

Hasbro said previously that it sees revenue increasing 3% to 5% for the year. Analysts are expecting $2.93 billion with a profit 99 cents a share. The company earned 62 cents a share on revenue of $2.82 billion last year.