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The force is strong with Hasbro: earnings up 15%

These are the droids they were looking for in the third quarter.These are the droids they were looking for in the third quarter.
These are the droids they were looking for in the third quarter.Photograph by Michael Nagle—Bloomberg via Getty Images

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.