Hasbro’s stock set to rally after big profit beat, while revenue came up a bit shy

Shares of Hasbro Inc. were indicated up more than 2% in premarket trading Tuesday, after the toy maker reported a big first-quarter profit beat, while revenue came up a bit shy. The company swung to net income of $116.2 million, or 84 cents a share, from a net loss of $69.7 million, or 51 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share rose to $1.00 from 57 cents, beating the FactSet consensus of 64 cents. Revenue increased 0.8% to $1.15 billion, just below the FactSet consensus of $1.17 billion, as 14% growth in consumer products and a 15% increase in Wizards of the Coast and digital gaming revenue offset a 32% drop in entertainment revenue. “We continue to target full-year double-digit revenue growth for Hasbro supported by innovation and quality execution throughout the business,” said Chief Executive Brian Goldner. The current FactSet consensus for 2021 revenue of $6.08 billion implies 11.2% growth. The stock has gained 3.7% year to date through Monday, while the S&P 500 has advanced 11.5%.

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