Toy company Hasbro (NASDAQ: HAS) has just reported its Q4 EPS is $1.53, which is impressively $0.25 higher than the previous analyst estimate of $1.27. In addition, quarter for the revenue registered around $1.63 billion, which is also much higher than the previous consensus estimate, which was $1.5 billion.
Hasbro Chairman, President, and Chief Executive Officer, Brian Goldner, explains, “Hasbro’s global team delivered a tremendous 2016. We reached the $5 billion revenue mark for the first time in company history, we improved profitability and we invested to grow Hasbro over the long-term while increasing our dividend and share repurchase levels.”
He goes on to say, “Hasbro’s foresight to build brands led by storytelling, consumer insights and innovation, combined with the relentless execution of our Brand Blueprint including investments in entertainment and digital gaming, is driving our business and creating long-term strategic differentiators for Hasbro. We are well positioned for a successful 2017 and the continued advancement of Hasbro’s brand-building capabilities for years to come.”
Toy experts anticipate that 2017 will continue the growing strength in the toy industry. And this growth is largely due to unusually high Hollywood motion picture releases. Movie licensing contributes largely to a boost in the toy industry for companies like Hasbro and industry peers Lego and Mattel.
As an example of this, Hasbro currently has two major films based on brands from in-house. These are “Transformers: The Last Knight” and “My Little Pony.” But the toy maker also holds key licenses for other properties. This includes the upcoming live-action “Beauty and the Beast” film and a pending “Guardians of the Galaxy” sequel.
Indeed, Hasbro Chief Financial Officer, Deborah Thomas, “Our strong top line performance continued in the fourth quarter and we profitably grew Hasbro throughout the year. Looking ahead, we are very well positioned to support our business. We continue investing in our industry-leading brands, our differentiated capabilities around the Brand Blueprint and in our systems to support long-term, cost efficient business growth. We ended the year with $1.28 billion in cash, inventories in line with last year, and we paid out $400 million to shareholders through dividends and share repurchases.”
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