Earnings Stock Movers: Hasbro, Leggett & Platt, Yum! Brands
Hasbro, Inc. (NASDAQ:HAS) reported its results for the fourth quarter. Net income for the toys and games company fell to $139.1 million ($1.06 per share) vs. $140 million (99 cents per share) a year earlier. This is a decline of 0.6% from the year earlier quarter. Revenue rose 4% to $1.33 billion from the year earlier quarter. Hasbro, Inc. fell in line with the mean analyst estimate of $1.06 per share. Analysts were expecting revenue of $1.34 billion.
“In 2011 we delivered strong growth in our international business driven by continued investments in advancing our global capabilities,” said Brian Goldner, President and Chief Executive Officer. “However, we did not meet our expectations for growth in the U.S. and Canada segment, as we experienced weaker demand than we had anticipated, especially post-Thanksgiving, including challenges in the Games & Puzzles category. We have taken significant steps by putting new leadership and new plans in place to re-accelerate growth and innovation in both of these important areas.”
Competitors to Watch: Mattel, Inc. (NASDAQ:MAT), LeapFrog Enterprises, Inc. (NYSE:LF), JAKKS Pacific, Inc. (NASDAQ:JAKK), RC2 Corporation (NASDAQ:RCRC), Target Corporation (NYSE:TGT), Wal-Mart (NYSE:WMT), Bally Technologies Inc. (NYSE:BYI).
Leggett & Platt Inc. (NYSE:LEG) reported its results for the fourth quarter. Net income for the home furnishings and fixtures company fell to $8.7 million (6 cents per share) vs. $31.4 million (21 cents per share) a year earlier. This is a decline of 72.3% from the year earlier quarter. Revenue rose 6.5% to $854.1 million from the year earlier quarter. Leggett & Platt Inc. reported adjusted net income of 22 cents per share. By that measure, the company beat the mean estimate of 21 cents per share. It beat the average revenue estimate of $826.3 million.
President and CEO David S. Haffner commented, “We remain well poised for earnings growth when the economy expands. That has not yet occurred broadly; to the contrary, in our markets, aggregate demand was essentially flat in 2011. As a result, we continue to tightly manage costs, exit unprofitable businesses, and focus on other elements of our strategic imperatives. “Though sales grew in 2011, most of the increase was due to inflation and currency rates, which didn’t generate much profit. After improving for the last three years, EBIT margin declined in 2011 due to restructuring costs, inflation, and weak market demand for some of our products. We are dedicated to reversing this trend in 2012.”
Competitors to Watch: Select Comfort Corp. (NASDAQ:SCSS), Tempur-Pedic Intl. Inc. (NYSE:TPX), Sealy Corporation (NYSE:ZZ), La-Z-Boy Incorporated (NYSE:LZB), Flexsteel Industries, Inc. (NASDAQ:FLXS), Hooker Furniture Corp. (NASDAQ:HOFT), Chromcraft Revington, Inc. (AMEX:CRC).
YUM! Brands Inc. (NYSE:YUM) reported its results for the fourth quarter. Net income for YUM! Brands Inc. rose to $356 million (75 cents per share) vs. $274 million (56 cents per share) in the same quarter a year earlier. This marks a rise of 29.9% from the year earlier quarter. Revenue rose 15.4% to $4.11 billion from the year earlier quarter. YUM! Brands Inc. beat the mean analyst estimate of 74 cents per share. Analysts were expecting revenue of $4.03 billion.
David C. Novak, Chairman and CEO said, “I’m pleased to report full-year EPS growth of 14%, making 2011 the tenth consecutive year we exceeded our annual target of at least 10%. The highlight of 2011 was again the exceptional performance of our China business, which grew system sales by 29% and operating profit by 15%, prior to foreign currency translation. We opened a record 656 new restaurants and delivered extraordinary same-store sales growth of 19%. Clearly, our KFC and Pizza Hut brands in China continued to strengthen their category-leading positions. At the same time, Yum! Restaurants International opened 905 new units, including 622 in high-growth emerging markets. We are on the ground floor of growth in India, Russia and Africa, where system sales grew at strong double-digit rates. For the year, our emerging market businesses at Yum! Restaurants International grew system sales 13%, prior to foreign currency translation, including new-unit growth of 7%. Emerging markets contributed nearly 50% of operating profit at Yum! Restaurants International. The Yum! growth story is clearly about China and a whole lot more.”
Competitors to Watch: McDonald’s Corporation (NYSE:MCD), Wendy’s Arby’s Group Inc. (NYSE:WEN), Carrols Restaurant Group, Inc. (NASDAQ:TAST), Morgan’s Foods, Inc. (MRFD), Papa John’s Int’l, Inc. (NASDAQ:PZZA), Domino’s Pizza, Inc. (NYSE:DPZ), Chipotle Mexican Grill, Inc. (NYSE:CMG), Nathan’s Famous, Inc. (NASDAQ:NATH), Jack in the Box Inc. (NASDAQ:JACK), Starbucks Corporation (NASDAQ:SBUX), Sonic Corporation (NASDAQ:SONC) and AFC Enterprises, Inc. (NASDAQ:AFCE).
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