"All is well here in New England," said CEO Al Verrecchia of Rhode Island-based Hasbro
Verrecchia should feel upbeat, regardless of the on-field achievements of the Boston area's sports teams. Hasbro scored a profit of $0.78 a share in its latest quarter before favorable charges. That was well ahead of the $0.58 per share it earned a year ago and the $0.71 a share that the pros were expecting. Net revenues climbed 18% higher to $1.2 billion, also topping Wall Street targets.
Toymakers have been a challenging investment lately. Mattel
These events are opening up the door for rival toymakers including Hasbro and JAKKS Pacific
Verrecchia began by addressing concerns about the company's five-year licensing deal with Marvel
Hasbro is also doing well with its Transformers toy line. Riding on the success of Viacom's
This doesn't mean that Hasbro's other toy lines will become major third-party franchises. For example, don't look for any of the following:
- Candy Land as a chain of confectionary shops.
- Operation as a prime-time medical drama.
- A pro sports league based around Nerf products.
However, with Hasbro's brand still golden, who am I to assume that the party ends with Transformers on the big screen? The company has now obliterated profit targets in four of the past five quarters. And there is little reason to believe that demand will dry up for the company's collection of board games, toys, and licensed merchandise.
All is well in New England, indeed.