Thanks to solid holiday toy sales, Hasbro Inc (NASDAQ: HAS) beat analyst expectations for the fourth quarter. The company was afforded a considerable boost by toy sales for recent movie releases by Marvel (parent company Disney, (NYSE: DIS)) and a strong showing by its own properties.
According to Hasbro's charmingly colorful investor presentation, Net revenues were $2.01 billion for the quarter, beating analyst estimates of $1.87 billion. Adjusted EPS sat at $1.21, with EBITDA sitting at an adjusted $306.5 million.
Probably the biggest catalyst for Hasbro's was Sony's (NYSE: SONY) recent blockbuster "Spider-Man: No Way Home." The movie was a smash success for Sony, reaching $1 billion in sales in under two weeks. The title also practically printed money for Hasbro, providing a 13% increase to the company's "partner brands" income through branded toy sales.
Hasbro's properties delivered strong results as well. The brand's latest iteration of the My Little Pony franchise, A New Generation, was #1 on Netflix Kids (NASDAQ: NFLX) in 80 countries. Hasbro's gaming division delivered strong results, while its Wizards of the Coast subsidiary had its "best year ever."
The boost helped the company offset recent losses, such as the October passing of CEO Brian Goldner after a years-long battle with cancer. Goldner's reinvigoration of the company through his "brand blueprint" helped pave the way for Hasbro's current success.
In January, Hasbro also lost the license to produce Disney princess branded dolls to Mattel (NASDAQ: MAT), which had previously lost the rights to Hasbro in 2016.
The company's guidance is where the excitement of its 2021 success wears thin, with Hasbro warning of a more challenging year ahead due to ongoing supply line dysfunction. The company noted that it has already been feeling the sting, having faced logistical difficulties during the holiday season. In addition to delays, the company faces rising shipping costs, which it hopes to offset with a price hike in Q2.
Investors seemed more worried than excited, with Hasbro's stock initially sinking on the company's report. Shares ended Monday 0.92% down after taking a heck of a ride following a morning plunge. Tuesday showed more fluctuations, with shares ultimately ending the day 0.76% down. Shares had recovered nearly 3% by noon on Wednesday.