Strong toys for boys sales boost Hasbro

Hasbro led the benchmark S&P 500 on Monday after the US toymaker reported an unexpected rise in revenues, buoyed by a jump in sales of the company's boys and pre-school targeted products.

Shares of the Rhode Island-based company climbed 9 per cent to $71.59, touching a record high and adding more than $700m to the company's market valuation, as sales climbed 5 per cent to $714m. Analysts on Wall Street had expected sales at the toy company to slide 3 per cent as the strength of the dollar weighs on results of most US multinationals.

Profits fell 17 per cent from a year earlier to $26.7m, or 21 cents per share, in the three months to the end of March. Excluding a tax benefit in the year earlier quarter, Hasbro said net earnings increased 43 per cent.

Sales of toys for boys climbed 10 per cent from a year earlier, lifted by growth of Transformers and Marvel franchised products, while its games and puzzle business recorded a 7 per cent rise in revenues.

"2015 is off to a good start with continued momentum in our business, led by growth in all of our franchise brands and the underlying strength in demand across international markets, including the emerging markets," said Brian Goldner, Hasbro chief executive.

Halliburton shares advanced on Monday after the oil services behemoth eclipsed first-quarter earnings expectations and executives said the company had cut 10 per cent of its headcount in the past two quarters.

The company slipped to a loss of $643m, or 76 cents per share, in the three months to the end of March, as sales fell 4 per cent to $7.1bn. Halliburton took approximately $823m in charges to write down assets and restructure its business as a slide in crude prices weighs on the oil industry.

Adjusting for some items, Halliburton said earnings from operations was 49 cents a share, ahead of analyst forecasts for 36 cents per share. Halliburton shares climbed 4 per cent to $48.87.

Royal Caribbean shares declined 7 per cent to $73.18 after the world's second-largest cruise operator cut its earnings guidance on the strength of the US dollar and a rise in fuel prices since January.

The company now expects adjusted earnings per share to range between $4.45 and $4.65, 20 cents lower than previous forecasts. Analysts on Wall Street had projected adjusted earnings of $4.70 a share ahead of the announcement.

Michael Kors shares slipped 2 per cent to $61.86 after analysts with Mizuho Securities downgraded the retailer to 'neutral' from 'buy' following a survey by the brokerage that showed a rise in the number of consumers who find its products too ubiquitous.

"Survey respondents increasingly cited disinterest because the brand was 'too common' and 'lacked fashion newness' that may substantiate investor concerns of saturation in North America," Betty Chen, an analyst with Mizuho, said.

The US retailer has come under pressure from shareholders who are concerned that the company's brisk expansion and strong same-store sales figures could decelerate.

Overall, US equities started the week on a strong footing, rebounding from a sharp sell-off on Friday. The S&P 500 climbed 1 per cent to 2,102.11 while the Dow Jones Industrial Average rose 1.4 per cent to 18,072.77. The technology-heavy Nasdaq Composite advanced 1.1 per cent to 4,984.44.

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