Hasbro, Inc. (Nasdaq: HAS) today reported financial results for the third quarter 2017. Net revenues increased 7% to $1.79 billion. Net earnings were up 3% while operating profit was essentially flat at $360.9 million. 

About Hasbro Inc.

Hasbro, Inc. designs, manufactures, and markets toys, games, interactive software, puzzles, and infant products internationally. The Company's products include a variety of games, including traditional board, card, hand-held electronic, trading card, role-playing, and DVD games, as well as electronic learning aids and puzzles.

Q3 Financial Results

• Net revenue: UP 7% to $1.79 billion (includes a favorable $29.6 million impact from foreign exchange).
  • U.S. and Canada segment: UP 7%
  • International segment: UP 7%
    • Europe region: UP 3%,
    • Latin America region: UP 13%,
    • Asia Pacific region UP 17%,
    • Emerging markets region: UP 8%.
  • Entertainment and Licensing segment: UP 4%
• Net earnings: UP 3% to $265.6 million, or $2.09 per diluted share (includes a $0.04 per diluted share benefit from the adoption of FASB ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting).
• Operating profit: Flat at $360.9 million 
  • U.S. & Canada segment : DOWN 5%
  • International segment: DOWN 0.8%
  • Entertainment and Licensing segment: UP 20%

Dividend Payout

The Company paid $71.4 million in cash dividends to shareholders during the third quarter 2017. The next quarterly cash dividend payment of $0.57 per
common share is scheduled for November 15, 2017 to shareholders of record at the close of business on November 1, 2017.

Share Repurchases

During the third quarter, Hasbro repurchased 947,300 shares of common stock at a total cost of $92.9 million and an average price of $98.06 per share. Hasbro repurchased $111.5 million worth of common stock during the first three quarters of 2017. At quarter-end, $216.5 million remained available in the
current share repurchase authorization.

Executive Statements

Brian Goldner, Hasbro’s Chairman and CEO, said:

“As a result of the Toys“R”Us bankruptcy filing in the U.S. and Canada, there was a negative impact on our quarterly revenues and operating profit. However, our multi-platform content strategy, combined with an industry leading investment in innovation and an omni-channel commercial approach, is driving strong consumer takeaway heading into the holiday season...

Deborah Thomas, Hasbro’s Chief Financial Officer, said:

"The quarter presented several obstacles, but the team delivered with higher revenue and earnings, as well as executing nearly $93 million of share repurchases. We are well positioned for the holiday, including good quality inventory at Hasbro and at retail, backed by strong consumer momentum...Our updated expectation is fourth quarter revenues will increase in a range of 4%
to 7% versus the fourth quarter 2016.”