The Dynamic Dividend

Hasbro Continues to Lose Toy War to Mattel

Hasbro (HAS) reported second quarter revenue that crushed the consensus analyst estimate Monday morning, but earnings disappointed and the country’s #2 toymaker showed a decline in every segment not propped up by its Transformers lineup.

Hasbro posted adjusted earnings of $0.33 per share on $908.5 million in revenue, falling short of the average profit view ($0.39 per share) while easily surpassing the consensus sales estimate ($854.8 million). Net earnings rose 33% year-over-year, while net revenue grew by 23%.

The company’s revenue growth during the quarter was powered exclusively by its “Boys” product category, thanks to its Transformers toy lineup (licensing revenue associated with the latest Transformers film won’t be recorded until the third quarter). The unit nearly doubled (+96%) its sales to completely offset declines elsewhere: revenue for Hasbro’s “Games and Puzzles” category fell 12%, while sales under the “Girls” and “Preschool” umbrellas dropped 11% and 10%, respectively.

For the second consecutive quarter, the company’s results were a stark contrast to the numbers put up by rival (and #1 U.S. toymaker) Mattel, which reported accelerated growth across all units on Friday.

On the bright side, the company said it expects “to deliver meaningful growth in both revenues and earnings per share versus our 2010 reported full-year results.” The average analyst forecast currently calls for a 16% rise in EPS and 10% sales growth.

Shares of HAS fell to $40.60 (-1.86%) in pre-market trading, where they carry a 2.96% dividend yield.

Hasbro is currently on pace to improve its dividend output for the eighth consecutive year after giving shareholders a 20% raise in February. The company has increased its dividend rate tenfold during its streak.