Investing.com - Hasbro took a beating Friday, weighing on the consumer discretionary sector, after the toymaker's quarterly results fell well short of estimates due to the Toys 'R' Us bankruptcy.
Hasbro (NASDAQ:HAS) fell 5% after reporting fourth-quarter earnings of $1.33 on revenue of $1.39 billion, missing estimates compiled by Investing.com for earnings of $1.39 a share on revenue of $1.53 billion.
Sales during the crucial holiday period didn’t live up to expectations as the hit from the closure of Toys 'R' Us, one of the company's largest customers pre-bankruptcy, was worse than feared.
The poor performance comes amid growing concerns that tablets may soon usurp traditional toys as must-haves among children. But those fears are premature, even as Toys 'R' Us was sent to the toy graveyard, according to market researcher NPD Group.
The 2% decline in toy sales seen last year was "a solid performance after such a significant shift in the retail landscape," according to Juli Lennett, vice president and industry advisor, for Toys at NPD Group.
Hasbro's slate of toys from blockbuster franchises for the coming year, including "Star Wars," "Frozen" and Marvel's "Avengers," offered a semblance of hope for market participants, as did its partnership with commercial behemoths like Amazon (NASDAQ:AMZN).
CFRA, an independent research provider, upgraded its rating on Hasbro to hold from sell, expressing optimism in the company's entertainment offerings, as well as the partnership with Amazon.
Rival toymaker Mattel (NASDAQ:MAT) navigated the impact from the Toy 'R' Us collapse as strong sales of Barbie saw fourth-quarter earnings and revenue beat estimates compiled by Investing.com. Its shares soared 23%.