U.S. toy maker Hasbro beat expectations for quarterly profit and revenue on Monday as a jump in Marvel toy sales helped it recover ground lost in last year's Toys 'R' Us bankruptcy, sending its shares up as much as 14 percent.
Expectations for earnings by the maker of Play-doh and Monopoly were almost half of what they were a year ago going into the results release, driven chiefly by concerns over the disappearance of its biggest retail partner.
In the event, net earnings fell 11 percent to $60.3 million, or 48 cents per share, but were way past analysts' average estimate of 29 cents per share — the biggest beat in nearly two years, according to Thomson Reuters I/B/E/S.
"We don't expect to recapture all of the loss (of) revenue in 2018, but by 2019, we should have moved beyond Toys 'R' Us," Chief Executive Brian Goldner said.
Toys 'R' Us accounted for 10 percent of all Hasbro sales and the company has moved quickly to reallocate inventory to Walmart, Target, and others. Partnerships with big media producers like Walt Disney also helped.
The company was also creating exclusive products and programs online to support retailers and retail events such as JD.com's JD day, Amazon's Prime Day, and the Alibaba Singles Day, executives said on a post earnings call.