Discussion in 'Transformers News and Rumors' started by e3nine, Apr 23, 2007.
Hmmm... good times if you're a stock holder!
And I can proudly(?) declare I contributed to that.
Excellent...yeesss everything is going as planned....
And I can proudly declare that both my wife and I have both contributed heartily to that growth with our ever-growing TF and MLP collections!
You're welcome, Hasbro!
Now, give Aaron Eric Forest and Bill raises.
Its because of Classics, they should continue them.
no love for classics?
No .... the franchise is growing because of the news and hype of the new movie. There has not been an inflation in the popularity of Transformers since this movie came out. People are starting to get into the Transformers because of it. It has absolutely nothing to do with the classics line. It has to do with public interest in the name brand because of this highly anticipated movie.
If Hasbro were to release all of their new models for the movie, I will be willing to bet money that those toys will outsell the classics.
I think we need to see the third quarter report.
It's almost obvious the second quarter report will say increased sales on Spider-man toys, and the third quarter with increased sales on Transformers' brand toys.
Might as well add Mike Jennifer Jared Melissa and that lovable temp Andrew (who just started another six month tour of duty at the big "H") to that list.
- L -
You'll set of the Godsenddeath alarm!!
You are right, but you have to admit that the Classics line gave us older fans somthing worth invest hard earned bucks on. I awaited years for figures like those. G1 characters with more detail and full articulation. I t would be dumb on Hasbro's part to not continue with that line of figures.
I am sure Hasbro's sales will stay nutral when the movie hype is over. Doesn't mean that Classics, Movie, and the new animated series lines will come to an end though.
True. I myself, have purchased all of the toys in the classics line so far. There are a few people here at the school, who just got into buying the toys just because of this new movie. And since those toys are the only ones out, they buy the classics. But, if they released all of those movie toys now, you can bet your bottom dollar that those same people would buy the new toys instead of those classics. They got into it because of the movie, and bought the toys because of namesake.
But ya, I actually hope they keep the classics going for those of us that have been with TF since the beginning, or general fans of G1. In the collectors niche market, there is still lots of room for these classics. As a new toy line to bring in a completely new generation of fans? I highly doubt it.
Wow, I knew they were performing well, but that's amazing
-murphbri (needs to get his hands on some Hasbro stock before the movie comes out)
Good..now take that 625.3 million and make us some more ...oops..nevermind
Some more news coming over the ticker tape at my job this morning:
( DJ ) 04/24 07:34AM =SMARTMONEY.COM: One-Day Wonder: Hasbro Weaves Web Of Success
By By Will Swarts
(This article was originally published Monday)
Share price as of Friday's close: $30.21
Share price now: $32.54
Percent change: 7.7%
Volume: 6.5 million shares, daily average 1.6 million
Investors were pleased by a cinematic swing to a profit in Hasbro's
first-quarter results, and closed up nearly 8% after the toymaker beat Wall
Street earnings estimates by 19 cents a share.
The Pawtucket, R.I.-based company posted earnings of 19 cents a share for a
quarter in which Wall Street analysts, on average, expected Hasbro to simply
break even. On a Monday conference call, CEO Al Verrecchia said the strong
showing was fueled by sales of Spider-Man 3 and Transformers merchandise ahead
of the upcoming summer blockbuster movie releases. Other divisions also saw
strong sales, he said.
Revenue climbed $625 million in the quarter, a 34% jump from a year ago,
when revenue was $468 million. The company also bought back $74 million worth
of stock, or approximately 2.5 million shares.
"We are very pleased with the strong start to the year, with all major
product categories growing year over year. Our core brands and new product
initiatives performed very well with revenue growth for the quarter pretty
balanced between our Marvel business and all our other Hasbro business,"
Verrecchia told investors. "That said, it is only the first quarter and there
is still a lot of business to be done to achieve our full-year financial
He said the company is confident it can achieve an operating margin of 12%
for the full year, and that the company is riding a wave of retail success
that began with a strong fourth-quarter performance.
"We created a lot of momentum with our core brands and new product
initiatives in 2006 that has continued into 2007," he said.
The company beat Wall Street estimates for the last three quarters since
posting its three-cents-a-share loss for the first three months of 2006.
The planned May 4 release of "Spider-Man 3" allowed Hasbro to weave an early
sales web by booking their shipments to retailers in the first quarter, but
it's far from certain those strands will hold up after the Sony Pictures (SNE)
movie hits the multiplexes.
Nevertheless, Wall Street analysts were pleasantly surprised by the earnings
leap. Margaret Whitfield, at Sterne Agee, wrote Monday that her initial
full-year earnings estimates of $1.53 a share appeared low, as did her 2008
estimate of $1.70 a share. Wall Street on average expects 2007 earnings of
$1.62 a share this year and $1.66 a share next year, according to Thomson
Gerrick Johnson, at BMO Capital Markets, says the lift is a welcome sign,
but that investors need to be aware of several factors that could flatten out
the seasonal spike.
First, the toy industry had its first profitable fourth quarter - on a
retail level - in five years, and it's carried over across the board. Rival
Mattel (MAT) last week beat Street estimates, swinging to a profit of three
cents a share, above Wall Street's projected quarterly loss of five cents a
"There's definitely an industry thing going on," Johnson says. "For the
first time in five years, manufacturers were chasing demand. There were hot
products - Tickle Me Elmo, Dora the Explorer, Hasbro's My Pretty Pony and some
of the Littlest Pet Shop Items - and when those things sell out, you have lot
of kids who did not get what they wanted for Christmas. Then you have a lot of
retailers thinking that there are parents who are now saying, 'All right, I'll
try to find that now.'"
Also, a strong showing in a traditionally weak quarter does not a blowout
"When you have the seasonally slowest quarter of the year, any absolute
change like big retail orders or a theatrically tied product is going to have
a distortive effect," Johnson says. "Originally, people were looking at
'Spider-Man 3' as a May 4 release, and I don't think a lot of people
formulated their [Hasbro] earnings with a ship date of March 24. Even without
the distortive effect of a huge initial ship to retailers, though, they've
still had a strong quarter."
Verrecchia also underscored the point in the conference call. "Keep in mind
that in addition to two upcoming movie releases, this is a seasonal business
that is heavily weighted to the back half," he said.
And, simply put, kids change their minds. "The toy industry is 'hit driven'
with changing patterns of interest from young fickle consumers," Whitfield
The Bottom Line
Verrecchia pointed out that some of Hasbro's enduring brands also yielded
robust results, with the old standby Monopoly passing Go and seeing a 22% jump
in quarterly sales. That's good, because Hasbro's movie products of the moment
are about to face tons of competition from other summer flicks' merchandise.
On an almost weekly basis, kid-themed movies and their attendant toys will
roll onto cinema screens and store floors over the next four months: "Shrek
3," "Pirates of the Caribbean: At World's End," the surfing penguin movie
"Surf's Up," "Fantastic Four II," and "Harry Potter and the Order of the
Phoenix" are all going to compete for attention and young shoppers' dollars.
"That's what I think people should be concentrating on - what happens to
these products that have been shipped in, and whether retailers will need to
reorder them," Johnson says. "There are a lot of movies this year that are
trying to appeal to kids."
If the many other licensed toy tie-ins cut into Spidey and the Transformers,
that may gum up projections for a heroic year from Hasbro.
-For more information and analysis of companies and mutual funds, visit
SmartMoney.com at http://www.smartmoney.com/
(END) Dow Jones Newswires
Copyright (c) 2007 Dow Jones & Company, Inc.
Great article. Didn't know Spider-man 3 sales were affecting FQ reports.
I said it when the Spiderman 3 stuff was released (not here, to my friends) but acquiring the Marvel license was the smartest damn thing Hasbro could've done going into 2007.
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