With the rebound in TV and film business, Hasbro’s sales growth is expected to exceed Mattel Reuters

Uday Sampas Kumar

(Reuters)- Hasbro (Nasdaq:) is expected to exceed Mattel (Nasdaq:) The first quarterly sales increase since the beginning of the pandemic, as the return of Marvel’s superheroes drove toy sales, and its TV and movie production was back on track.

The Monopoly board game maker, which will announce its second-quarter results on Monday, has high hopes for its Entertainment One division, which is the studio behind “Little Pig Page”, which has experienced a year of COVID-19 Resumption of growth after production restrictions.

The release of “The Falcon and the Winter Soldier” and “Black Widow” is also expected to contribute an estimated 34.7% to Hasbro’s revenue growth in the second quarter through the sale of toys based on popular franchises.

At the same time, Mattel’s sales growth in the second quarter is expected to slow to 19.2% from 47.2% in the first quarter.

Jackie Breyer, the publisher of the trade magazine Toy Book, said: “I can see Hasbro regain some of the share lost to Mattel. With the sales of new movies released this year, it will gain something.”

(Chart: Sales performance: Hasbro and Mattel: https://graphics.reuters.com/HASBRO-RESULTS/PREVIEW/egpbknmyjvq/chart.png)

Context

Despite the increase in demand, Hasbro is more dependent on the closure of TV and film production than its rival Mattel and insufficient sales of toys related to large-scale movie releases, resulting in a 29% drop in estimated revenue in the second quarter of last year. “And “Twister” games.

Analysts expect Hasbro to provide an outlook for the holiday season, as supply disruptions and price increases have led to uncertainty about consumer demand during key shopping periods.

(Graph: Hasbro segmented revenue estimates: https://graphics.reuters.com/HASBRO-RESULTS/PREVIEW/egpbknmjjvq/chart.png)

basis

* According to Refinitiv data, based on an average estimate of 12 analysts, Hasbro’s revenue is expected to be 1.16 billion U.S. dollars.

*Earnings per share are estimated to be 47 cents per share.

* Hasbro’s share price has fallen 0.3% so far this year

(Illustration: Hasbro and Mattel: https://fingfx.thomsonreuters.com/gfx/buzz/lgpdwmlovo/gateway.jpg)

Wall Street sentiment

* The average analyst rating on the stock is “Buy”, and the median 12-month target price is $112.