Hasbro’s stock rallies toward 8-month high after profit and revenue beat expectations

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Shares of Hasbro Inc. rallied 1.7% toward an 8-month high in premarket trading Monday, after the toy maker reported third-quarter profit and revenue that beat expectations, and said deliveries are expected to improve in the fourth quarter. Net income was $220.9 million, or $1.61 a share, after net income of $212.9 million, or $1.67 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to $1.88, above the FactSet consensus of $1.63. Revenue grew 12.8% to $1.78 billion, above the FactSet consensus of $1.74 billion, as sales in the U.S. and Canada increased 9% and e-commerce revenue jumped 50%. Revenue from eOne TV and film fell to reflect entertainment delivery delays due to live-action production shutdowns as a result of the COVID-19 pandemic. “Building off this quarter’s growth in toys, games and digital we are positioned to deliver a good holiday season,” said Chief Executive Brian Goldner. “Live-action entertainment production is returning, and we are set to improve deliveries in the fourth quarter with some moving into 2021.” The stock has declined 12.9% year to date through Friday, while the S&P 500 has gained 7.3%.
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