Hasbro's Q3 Earnings Bode Well For Mattel

Shares of Hasbro, Inc. HAS are surging 7.2 percent on Monday after the company reported impressive Q3 numbers before the market open.

Hasbro Q3 revenue came in 14 percent higher than a year ago on the strength of its girls division. Revenue from the girl’s portfolio climbed 57 percent to $462 million.

While Hasbro shareholders are celebrating the news, BMO Capital analyst Gerrick Johnson tells Benzinga that the strong quarter is good news for competitor Mattel, Inc. MAT as well.

“The toy industry is very strong, and retailers are bringing in more products this holiday after two strong years of growth in 2014 and 2015,” Johnson explained.

Related Link: Mattel Could Be A Good Way To Play With Positive Toy Industry Trends

Johnson isn’t expecting much market-moving news from Mattel’s upcoming Investor Day. But he mentioned that he doesn’t see the Hanjin shipping bankruptcy impacting the company’s Q3 numbers.

“The manufactures saw this coming early and diversified their shipping carriers,” Johnson told Benzinga.

Mattel is expected to report Q3 earnings on Wednesday. The market certainly doesn’t seem to be interpreting the Hasbro news positively. Mattel stock is trading mostly flat in Mondays session.

Following Monday’s big move, Hasbro shares are now up 21.4 percent in 2016, while Mattel shares are up 10.6 percent.