The toymakers are back. Shares of Hasbro
Revenue climbed 12%, to $1.38 billion. Favorable foreign exchange trends propped up results, but Hasbro's top line still would have inched 7% higher on a constant dollar basis. The real story here, however, is the toymaker's widening margins. Earnings soared 77%, to $1.09 a share, completely obliterating analyst estimates of $0.81 a share.
Even for a company that has consistently topped Wall Street's profit targets, this is ridiculous.
The company's success during the telltale holiday quarter came primarily from its action toys. Having its G.I. Joe and Transformers toy lines splashed across the silver screen this past summer obviously helped Hasbro.
However, the toymaker isn't alone in the winner's circle. Rival Mattel
Why end the party now? LeapFrog Enterprises
The future is undeniably bright for Hasbro. There will be more Hollywood adaptations in the coming years. Its joint venture with Discovery Communications
Hasbro bulls will argue that the company isn't technically back, because it never really went away. Revenue has climbed in each of the past five years, with buyback-padded earnings per share inching higher for nine consecutive years. However, seeing Hasbro soar in tandem with the previously moribund Mattel is a screaming indicator that the toymaker industry itself is once again on the rise.
Longtime Fool contributor Rick Munarriz is a kid at heart, with the closet full of games to prove it. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool's disclosure policy is harmful only if it's not swallowed.