Hasbro Inc reported its largest jump in revenue for the quarter in close to five years, beating estimates of analysts by a large margin, driven by the demand for the toys based on Jurassic World and Star Wars: The Force Awakens movies.
Revenue for sales of toys that targeted boys, which includes action figures that are based on the two aforementioned blockbuster films that were leased in 2015, surged by 35% to end the quarter at $569.7 million.
Sales industry-wide of the licensed merchandise from Star War totaled close to $700 million across the U.S. during 2015, according to NPD Group, a research group that specializes in retail.
Mattel Inc, a larger rival to Hasbro, reported a rise in net sales for January, as sales of its Barbie dolls started to recover and demand increased for its Hot Wheels branded items.
Hasbro’s revenue that was generated from its games category, including the Monopoly board game, was higher by 11% after two quarters of straight declines.
The decline in revenue in the toys for girls group at the company slowed to just 17% for over 20% during the prior two reporting quarters.
Both Hasbro and Mattel have held discussions over a possible merger, said a national daily last Thursday. Most companies have not made a comment regarding the report.
The company’s net income that can be attributable to Hasbro increased by 3.4% to end at $175.7 million, equal to a per share amount of $1.39 for its quarter ending December 27.
Hasbro net revenue was up to $1.47 billion, excluding a strong dollar impact, according to an international news agency.
Hasbro increased its dividend for the quarterly to 51 cents a share up from 46 cents.
Up to the close of business on Friday, the stock had increased over 10% in early evening.