Hasbro Earnings Roll Out, But Do They Have The Touch? (HAS)

Toy maker Hasbro HAS reported earnings this morning, and profit fell 71% from a year ago on development costs. The Pawtucket, Rhode Island-based company said it earnings 12 cents per share on revenues of $672 million, compared to analyst forecasts of 17 cents per share on revenues of $659.1 million. Investors may want to take a look at adding shares of Hasbro on the pre-market dip, as most of the earnings miss was associated to one time charges, as the company continues to invest in product development, and gets its television network, The Hub, fully up and running. “2011 is the first year in our multi-year strategic plan in which we will have significant initiatives across all elements of our brand blueprint – in television, in movies, in digital gaming, in licensing and, most importantly, across our broad portfolio of toys and games,” said Brian Goldner, President and Chief Executive Officer. “We began the year by delivering a quarter consistent with our plan, including growth in many brands and across many countries. Importantly, we are building momentum leading up to the theatrical release of Transformers: Dark of the Moon on July 1 and two new Marvel films, Thor and Captain America: the First Avenger, this summer; multiple new innovative product launches; and the airing of Hasbro Studios television programs in territories around the world. The stage has been set for a strong year, and we continue to believe that we will grow revenues and earnings per share for the full-year 2011.” There was some weakness in the quarter, as games as Scrabble and Monopoly were weak, and girl's toys and preschool toys also declining. Major growth drivers this year include toys associated with "Thor," to be released on May 6, "Captain America," out July 22 and "Transformers: Dark of the Moon," out July 1. In addition to the toys from Transformers, Hasbro also gets a cut of the box office, as Optimus Prime, Megatron, Shockwave and others are Hasbro's own creations. "Dark of The Moon" is expected to be the biggest Transformers movie yet, as Michael Bay and company have acknowledged the mistakes they made with the second movie, "Revenge of the Fallen," and this should transform (or translate, if you prefer) into higher earnings in the next quarter. If Bay can deliver the touch, then perhaps shares of Hasbro in your portfolio can deliver the power.