Hasbro Posts 1Q Profit

Discussion in 'Transformers News and Rumors' started by e3nine, Apr 23, 2007.

  1. e3nine

    e3nine Poop.

    Joined:
    Aug 9, 2004
    Posts:
    3,875
    News Credits:
    7
    Trophy Points:
    186
    Likes:
    +7
    http://www.chron.com/disp/story.mpl/ap/fn/4739022.html

    Hmmm... good times if you're a stock holder! :D 
     
  2. redsquadron

    redsquadron Token idiot...

    Joined:
    Feb 10, 2003
    Posts:
    2,390
    Trophy Points:
    186
    Likes:
    +0
    And I can proudly(?) declare I contributed to that.
     
  3. Smiling_Kisame

    Smiling_Kisame Akatsuki Demon Shark

    Joined:
    Apr 20, 2007
    Posts:
    47
    Trophy Points:
    36
    Likes:
    +0
    kukuku...

    Excellent...yeesss everything is going as planned....
     
  4. Kranix2k

    Kranix2k Spare me this mockery!! TFW2005 Supporter

    Joined:
    May 12, 2003
    Posts:
    955
    Trophy Points:
    166
    Likes:
    +0
    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! :lol 
     
  5. Kickback

    Kickback Proud father Administrator Super Mod News Staff

    Joined:
    Jun 25, 2002
    Posts:
    40,257
    News Credits:
    2
    Trophy Points:
    347
    Location:
    Denver, CO
    Likes:
    +13
    Twitter:
    Instagram:
    Tumblr:
    You're welcome, Hasbro! :D 

    Now, give Aaron Eric Forest and Bill raises.
     
  6. Rattrap

    Rattrap Well-Known Member

    Joined:
    Aug 30, 2004
    Posts:
    2,149
    News Credits:
    3
    Trophy Points:
    206
    Likes:
    +3
    Ebay:
    Its because of Classics, they should continue them.
     
  7. onesock

    onesock Banned

    Joined:
    Aug 14, 2006
    Posts:
    8,177
    News Credits:
    1
    Trophy Points:
    211
    Likes:
    +1
    Ebay:
    Psh...

    :horse: 
     
  8. TheLastAutobot

    TheLastAutobot the guy behind the shades

    Joined:
    Nov 1, 2006
    Posts:
    132
    Trophy Points:
    56
    Likes:
    +0
    Ebay:

    no love for classics?
     
  9. nuopus

    nuopus Well-Known Member

    Joined:
    Jul 3, 2006
    Posts:
    694
    Trophy Points:
    136
    Likes:
    +0
    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.
     
  10. airfox

    airfox TF: Cybertronian Wars!

    Joined:
    Oct 22, 2002
    Posts:
    4,469
    News Credits:
    2
    Trophy Points:
    186
    Likes:
    +2
    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.

    -airfox
     
  11. Lazeric

    Lazeric Well-Known Member

    Joined:
    Jul 27, 2003
    Posts:
    747
    Trophy Points:
    146
    Likes:
    +0
    Ebay:
    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 -
     
  12. Feralstorm

    Feralstorm I ship Nick & Judy TFW2005 Supporter

    Joined:
    Jun 26, 2003
    Posts:
    17,109
    News Credits:
    2
    Trophy Points:
    327
    Likes:
    +58
    You'll set of the Godsenddeath alarm!! :) 
     
  13. Alpha-trion

    Alpha-trion Sentai Warrior

    Joined:
    Sep 29, 2006
    Posts:
    481
    Trophy Points:
    76
    Likes:
    +0
    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.
     
  14. nuopus

    nuopus Well-Known Member

    Joined:
    Jul 3, 2006
    Posts:
    694
    Trophy Points:
    136
    Likes:
    +0
    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.
     
  15. murphbri

    murphbri Well-Known Member

    Joined:
    Jul 2, 2006
    Posts:
    261
    Trophy Points:
    121
    Likes:
    +0
    Wow, I knew they were performing well, but that's amazing :eek: 

    -murphbri (needs to get his hands on some Hasbro stock before the movie comes out)
     
  16. Ruination04

    Ruination04 8 Years Old Since 1984!

    Joined:
    May 15, 2003
    Posts:
    6,111
    News Credits:
    5
    Trophy Points:
    226
    Likes:
    +5
    Ebay:
    Good..now take that 625.3 million and make us some more ...oops..nevermind
     
  17. Primeconvoy1

    Primeconvoy1 Cybertronian Broker

    Joined:
    Jul 1, 2002
    Posts:
    5,581
    News Credits:
    4
    Trophy Points:
    267
    Likes:
    +183
    Ebay:
    Some more news coming over the ticker tape at my job this morning:


    Show Headlines
    « »
    ( DJ ) 04/24 07:34AM =SMARTMONEY.COM: One-Day Wonder: Hasbro Weaves Web Of Success
    By By Will Swarts
    Of SMARTMONEY.COM

    (This article was originally published Monday)

    Hasbro (HAS)
    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

    The News

    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
    goals."
    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 Analysis

    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
    Financial.
    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
    share.
    "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
    year make.
    "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
    wrote Monday.

    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
    04-24-07 0734ET
    Copyright (c) 2007 Dow Jones & Company, Inc.
     
  18. airfox

    airfox TF: Cybertronian Wars!

    Joined:
    Oct 22, 2002
    Posts:
    4,469
    News Credits:
    2
    Trophy Points:
    186
    Likes:
    +2
    Great article. Didn't know Spider-man 3 sales were affecting FQ reports.

    -airfox
     
  19. Dark Magnus

    Dark Magnus Your opinion is wrong!

    Joined:
    Aug 2, 2003
    Posts:
    6,636
    Trophy Points:
    232
    Likes:
    +7
    Ebay:
    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.
     

Share This Page