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Hasbro Falls as it Fails to Best Mattel Despite Star Wars Strength

Published 10/26/2020, 11:27 AM
Updated 10/26/2020, 11:29 AM
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By Christiana Sciaudone

Investing.com -- Star Wars failed to give Hasbro (NASDAQ:HAS) a win despite better-than-expected results. 

Hasbro shares are down 10% after failing to live up to rival Mattel (NASDAQ:MAT)'s strong results last week.

Revenue grew in franchise brands, led by Magic: The Gathering, and products for Lucasfilm's Star Wars and The Mandalorian delivered strong sales, but third quarter revenue fell 4% on a pro forma basis to $1.78 billion. That compares to Mattel's gross sales gain of 10% to $1.8 billion.

Earnings per share of $1.88 compared to the estimated $1.62 on sales of $1.78 billion, versus the expected $1.73 billion. In contrast, Mattel's earnings per share of 95 cents compared to the estimated 39 cents on sales of $1.63 billion, versus the expected $1.47 billion.

While Hasbro revenue grew 9% in the U.S. and Canada and 7% in Europe, it tumbled 40% in Latin America and 9% in Asia.  Live-action production shutdowns led to a decline in television and film revenue.

"Building off this quarter's growth in toys, games and digital we are positioned to deliver a good holiday season," said Chief Executive Officer Brian Goldner in a statement. "Live-action entertainment production is returning, and we are set to improve deliveries in the fourth quarter with some moving into 2021."  



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