Hasbro reported initial results from its third quarter today, announcing that its sales were up 18% and earnings per share up 23%, including the effects of an accounting change. Sales were up in all three of Hasbro's major segments for the first time this year, with toys up 23%, games up 11%, and international sales up 13% in dollars (22% in local currencies). These changes are stronger than the previous quarter, when toy sales were up 4%, games were down 2%, and international sales were up 17% (see 'Hasbro Has Strong Q2'). As was the case for Q2, Hasbro did not break out results for its retail segment in the announcement; presumably that information will once again be available in the formal Q3 report, due in about a month.
Toy brands cited as responsible for the strong quarter included Transformers and Beyblade, as well as Playskool and Videonow. Magic: The Gathering was cited as a strong contributor in the games segment, along with Monopoly, Trivial Pursuit, and Bulls Eye Ball. Beyblade, Magic, Transformers, and Playskool were the top contributors to the international results. Magic's strong performance worldwide was undoubtedly tied to the release of 8th Edition, which came out in that period.
Despite beating analysts' earnings predictions by achieving $.48 per share earnings vs. the anticipated $.42 per share, Hasbro is not changing its full year guidance.