(Reuters) – Hasbro Inc beat analysts’ estimates for quarterly revenue and profit on Monday, boosted by demand for Monopoly and other board games from stuck-at-home parents looking to keep their children entertained.
As schools in many parts of the country continue to hold classes online, coupled with limited options for outdoor activities, parents have turned to toys and board games to keep their children occupied, boosting sales for Hasbro and rival Mattel Inc.
Hasbro said it was positioned well for a “good” holiday but stopped short of providing a sales forecast, unlike Mattel, which last week said it expected mid-single-digit growth in gross sales for the crucial shopping season.
Analysts at MKM Partners said investors were likely expecting more from Hasbro, after Mattel’s trounced sales and profit forecasts last week. Hasbro shares, which have gained over 11% this month, fell 2% in premarket trading amid broader market declines.
The company also said coronavirus-induced production delays pushed revenue from its TV, film and entertainment business down nearly 30%, while a drop in sales in Latin America hit the company’s international business.
Total revenue from all of its gaming brands including Monopoly, Scrabble and Dungeons & Dragons jumped 21% to about $543 million in the third quarter.
The company’s net revenue rose 12.8% to $1.78 billion in the quarter ended Sept. 27, beating analysts’ average estimate of $1.75 billion, according to IBES data from Refinitiv.
Net earnings attributable to the company rose 3.7% to $220.9 million from a year earlier. On an adjusted basis, Hasbro posted earnings of $1.88 per share, beating estimates of $1.63 per share.
Reporting by Uday Sampath in Bengaluru; Editing by Anil D’Silva.