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Hasbro Positions for Strong H2'11, But Earnings Growth Will Be a Challenge

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By Zacks.com

Hasbro (HAS) reported second quarter 2011 earnings per share of 42 cents, which exceeded the Zacks Consensus Estimate of 38 cents and improved from 29 cents earned in the year-earlier quarter. The quarter's earnings included a favorable tax adjustment of 15 cents a share as well as a cost of 6 cents for severance and relocation associated with establishing a Center of Excellence for Hasbro Games in Rhode Island.

Hasbro's net revenue of $908.5 million in the quarter grew a solid 23.0% from the year-ago quarter and handily beat the Zacks Consensus Estimate of $846.0 million. Foreign exchange had a favorable impact of $35.8 million. Standout performance by the Transformers brand along with continued double-digit growth in the International segment aided the revenue upside.

Hasbro continued to return value to investors in the form of share repurchase programs and dividend distribution. READ FULL ARTICLE


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