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Shares of Hasbro, Inc. (NYSE: HAS) jumped more than 7 percent in pre-market trading after the company reported stronger-than-expected earnings for the first quarter.

The Pawtucket, Rhode Island-based company posted quarterly net income of $26.7 million, or $0.21 per share, compared to $32.1 million, or $0.24 per share, in the year-ago period.

Its revenue climbed 5 percent to $713.5 million from $679.5 million. However, analysts were expecting a profit of $0.08 per share on revenue of $660.27 million.

U.S. and Canada segment net revenue gained 2 percent to $345.7 million in the latest quarter, versus $337.7 million in the year-ago period. International segment net revenue rose to $305.7 million from $305.5 million, while entertainment and licensing segment net revenue jumped 74 percent to $60.6 million versus $34.9 million.

Net revenue in the boys category rose 10 percent year-over-year, while games category revenue gained 7 percent in the quarter. Net revenue in the girls category slipped 16 percent, while preschool category revenue surged 22 percent in the first quarter.

During the first quarter, the company repurchased around 436,000 shares at a total cost of $25.2 million.

"Our first quarter results highlighted the strength of our brands, our global reach and our balance sheet," said Deborah Thomas, Hasbro's Chief Financial Officer. "Foreign exchange did negatively impact both revenues and earnings in the quarter; however, several factors helped mitigate the negative impact to profitability. These included the continued momentum in our Franchise Brands, the benefit of favorable foreign exchange product cost hedges and a larger contribution of higher-margin Entertainment and Licensing revenues. Our first quarter results keep us on track to achieve our previously stated targets."

The average estimate among 23 Estimize users was for earnings of $0.09 per share and revenue of $668.78 million.

Hasbro shares rose 7.76 percent to $71.00 in pre-market trading.

Posted-In: profitEarnings News


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