UPDATE: Hasbro Posts Higher Q4 Earnings, Lifts Dividend

reported better-than-expected earnings for the fourth quarter. The Pawtucket, Rhode Island-based company posted quarterly net income of $169.9 million, or $1.34 per share, compared to $129.8 million, or $0.98 per share, in the year-ago quarter. Its adjusted net earnings came in at $1.22 per share. Its revenue gained 1.3% to $1.30 billion. However, analysts were expecting earnings of $1.21 per share on revenue of $1.33 billion. U.S. and Canada segment net revenue rose 1% to $2.02 billion in full-year 2014, up from $2.01 billion in 2013. International segment net revenue gained 8% to $2.02 billion from $1.87 billion, while Entertainment and Licensing segment net revenue surged 15% to $219.5 million in 2014 from $191.0 million in 2013. For full year 2014, boys category revenue jumped 20% to $1.48 billion, while games category revenue slipped 4% to $1.26 billion. Girls category revenue gained 2% to $1.02 billion, while preschool category revenue dropped 4% to $510.8 million. Hasbro raised its quarterly dividend by $0.03 per share to $0.46 per share. The company's board also approved an additional buyback of up to $500 million in stock. In 2014, the company repurchased 8.5 million shares at a total cost of $460.7 million. "The underlying strength of Hasbro's brands and financials enabled us to grow revenues and earnings despite a significant fourth quarter negative impact from foreign exchange," said Deborah Thomas, Hasbro's Chief Financial Officer. "In 2014, foreign exchange had a $93 million negative impact on revenues and approximately a $25 million negative impact on net earnings. Despite this, our focus on profitable growth delivered our highest operating profit margin in recent years, while generating $454 million in operating cash flow. In 2015, we have tremendous brand initiatives and entertainment upon which to capitalize, but anticipate foreign exchange will remain a significant headwind throughout the year." Hasbro shares fell 0.69% to close at $55.74 on Friday.