Hasbro Inc. (NASDAQ: HAS) reported a 78% dip in earnings for the second quarter of 2019 due to a charge related to the settlement of pension plan liability. However, the results exceeded analysts’ expectations.
Net income plunged by 78% to $13.4 million or $0.11 per share. Adjusted earnings climbed by 65% to $99.3 million or $0.78 per share for the latest quarter.
Net revenues increased by 9% to $984.5 million. Excluding a negative $20.7 million impact of foreign exchange, revenues for the second quarter of 2019 grew by 11%.
Revenue from US and Canada segment increased by 14% year-over-year as growth in Franchise Brands, Partner Brands and Emerging Brands partially offset decline in Hasbro Gaming. Driving the growth in the segment was an increase in Magic: The Gathering tabletop revenue from strong game releases in the second quarter.
Revenue from International segment declined by 1% as decline in Hasbro Gaming offset gains in Franchise and Emerging Brand. However, Entertainment, Licensing and Digital segment revenues increased 28% backed by digital gaming, primarily Magic: The Gathering Arena.
Franchise Brands revenue rose by 14% driven by growths in all three operating segments. Partner Brands revenue rose 3% on increases in Marvel’s Avengers and Spider-Man franchises, including Hasbro product supporting Avengers: End Game and Spider-Man: Far From Home.
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Hasbro Gaming revenue decreased 8% due to declines in other games, including Pie Face and Duel Masters. Emerging Brands revenue jumped by 28% backed by shipments of Power Rangers, and revenue gains in Furreal Friends and Playskool, including Mr. Potato Head.
The company paid $85.6 million in cash dividends to shareholders during the second quarter 2019. The next quarterly cash dividend payment of $0.68 per common share is scheduled for August 15, 2019 to shareholders of record at the close of business on August 1, 2019.
Shares of Hasbro ended Monday’s regular session up 0.79% at $108.51 on the Nasdaq. Following the earnings release, the stock rose 0.54% in the premarket session.