PAWTUCKET, R.I. (AP) — Hasbro's bet on Disney is paying off.
The toy maker's shares hit an all-time high Monday as it posted record annual revenue and breezed past Wall Street expectations after pulling off a coup at the castle. Hasbro snared the rights to Disney's princesses and sales in the girls category jumped more than 50 percent in 2016.
Hasbro shares jumped 15 percent Monday afternoon to $94.84 per share. When Hasbro wrested the rights from Mattel for Disney's "Princess" and "Frozen" dolls in late 2014, the company's stock was trading around $55 per share. Hasbro started producing and shipping the Disney lines last year.
At the same time, Mattel shares have lost nearly a quarter of their value. The stock is down 15 percent in the last month and its earnings in January were disappointing.
Hasbro said the girls category accounted for $1.19 billion of its $5.02 billion in revenue for 2016. That compares with total revenue of $4.45 billion in 2015 and $798.2 million in the girls category in 2015, before the Disney rollout in 2016.
Girls toys generated $394.2 million in revenue during the fourth quarter, up 52 percent from the $258.8 million in the same quarter of 2015.
Revenue for all games rose 9 percent on the year, and 11 percent quarter-over-quarter.
As pointed out by industry analysts, Hasbro shined even as the rest of the industry struggled this past holiday season. The company's profits for the fourth quarter reached $192.7 million, a 10 percent increase from the $175.8 million reported during the same period last year.
On a per-share basis, the Pawtucket, Rhode Island, company had net income of $1.52 for the fourth quarter. Earnings, adjusted for asset impairment costs, came to $1.64 per share, or 36 cents better than industry analysts had projected, according to a survey by Zacks Investment Research.
Revenue was $1.63 billion, also beating Wall Street forecasts for $1.47 billion.
For the year, the company reported profit of $551.4 million, or $4.34 per share, compared with $451.8 million, or $3.57 per share, in 2015.
Hasbro expects another big year in 2017, with product tie-ins to an assortment of major movie releases including "Star Wars: The Last Jedi," Disney's "Beauty and the Beast," and "Spider-Man: Homecoming." The company also noted the upcoming Transformers and My Little Pony movies, which are based on its own brands.
This story was generated in part by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on HAS at https://www.zacks.com/ap/HAS
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