Toymaker Hasbro beat analysts’ expectations for its latest earnings report, and can thank the sizzling demand for their Jurassic World and Star Wars-related products.
The company’s net revenues in the boys category rose 24% to $593.1 million, and cited the sales of toys from both the latest Jurassic film and Star Wars: The Force Awakens as a significant reason for the category’s explosive growth.
Overall, net earnings for the third quarter of this year rose to $207.6 million, or $1.64 per share, up from $180.5 million and $1.40 per share respectively in the previous comparative period, a hike of around 15%. This surpassed an analyst consensus of $1.52 per share. Net revenues for the quarter were flat at $1.47 billion. The only fly in the ointment was, as so often this quarter, the strong dollar, which it said had a negative impact of $132 million in the quarter. Revenue from emerging markets dropped 15% in dollar value, despite rising by 14% in local currency terms.
The results reflect the power of the licensing tie-ups Hasbro has signed for two of the world’s biggest film franchises today. Released this summer, Jurassic World now ranks as the third highest-grossing film of all time with a worldwide total of $1.67 billion, with a sequel on the way in 2018. Disney’s Star Wars: The Force Awakens is expected to follow suit upon opening in December and break every box office record imaginable, with a potential $2 billion in global receipts.
Both films’ thumbprint can be seen even in the preschool category—revenues increased 17% to $219.6 million due to growth in the Play-Doh brand relating to shipments of the Playskool Heroes “Star Wars Galactic Heroes” and “Jurassic World” lines.
