Categories Analysis, Leisure & Entertainment
Three noteworthy points from Hasbro’s (HAS) Q2 earnings report
The company will roll out price increases during the third quarter, which should be realized by the fourth quarter
Shares of Hasbro Inc. (NASDAQ: HAS) soared 12% on Monday after the company delivered better-than-expected earnings results for the second quarter of 2021. Revenue rose double digits compared to the same period a year ago while adjusted EPS jumped to $1.05 from $0.02 in Q2 2020. Both the top and bottom line numbers exceeded market estimates. Here are three noteworthy points from the report:
Revenue growth
Hasbro’s consolidated revenue grew 54% year-over-year to $1.32 billion, helped by revenue growth across all its major segments and brands. Revenue in Consumer Products rose 33% helped by higher demand for Hasbro products and toys. Wizards of the Coast and Digital Gaming revenues more than doubled driven by strength in MAGIC: THE GATHERING and DUNGEONS & DRAGONS.
The releases of MAGIC: THE GATHERING Strixhaven and Modern Horizons 2 as well as the launch of Magic: The Gathering Arena on mobile contributed to this impressive growth. Gains in NERF, TRANSFORMERS, MY LITTLE PONY, PJ MASKS, PEPPA PIG and GI JOE helped drive revenue increases of 72% in Franchise Brands and 54% in Emerging Brands during the quarter.
Pickup in TV/film/entertainment
Hasbro’s entertainment segment witnessed a revenue growth of 47% in Q2 compared to the same quarter a year ago as theatrical releases and content production make a comeback. The company saw a growth in television revenue helped by scripted and unscripted programs. Shows such as Cruel Summer and The Rookie remain popular and the company has movies such as Stillwater slated for release. In unscripted TV, there are nearly 40 active productions for Canada, the US and the UK.
The popularity of certain movie franchises and TV shows have fueled demand for several of Hasbro’s products. Revenue in Hasbro’s Partner Brands grew 53% helped by higher demand for products inspired by the Marvel and Star Wars franchises as well as the popular Disney+ show The Mandalorian.
Higher prices and holiday demand
Hasbro is seeing significantly higher freight and input costs this year versus the last. To tackle these rising costs, the company will roll out price increases during the third quarter, which should be realized by the fourth quarter.
The company is also working on ensuring product availability to make the holiday season a success. These efforts include sourcing more products earlier out of multiple countries, increasing the number of ocean carriers and utilizing more ports to speed up product delivery.
Looking for more insights on the earnings results? Click here to access the full transcripts of the latest earnings conference calls!
Most Popular
Infographic: Key metrics from Estee Lauder’s (EL) Q3 2024 earnings results
The Estee Lauder Companies Inc. (NYSE: EL) reported its third quarter 2024 earnings results today. Net sales were $3.94 billion, up 5% from the prior-year quarter. Organic sales increased 6%.
YUM Earnings: Key quarterly highlights from Yum! Brands’ Q1 2024 financial results
Yum! Brands, Inc. (NYSE: YUM) reported first quarter 2024 earnings results today. Total revenues decreased 3% year-over-year to $1.59 billion. Same-store sales declined 3%. Net income increased 5% to $314
Pfizer (PFE) Q1 2024 Earnings: Key financials and quarterly highlights
Pfizer Inc. (NYSE: PFE) reported first quarter 2024 earnings results today. Revenues decreased 20% year-over-year to $14.8 billion. Reported net income declined 44% to $3.1 billion, or $0.55 per share,
