Hasbro Inc reported weaker-than-expected fourth-quarter sales as demand for its toys slackened late in the holiday season but backed its forecast for earnings and revenue growth in 2011.

The No. 2 U.S. toy company's outlook comes soon after smaller rival LeapFrog Enterprises Inc slashed its 2010 outlook, also citing demand that petered out after a strong start to the holiday season.

For the fourth quarter 2010, Hasbro expects revenue of about $1.3 billion, below analysts' average expectations of $1.39 billion, according to Thomson Reuters I/B/E/S.

For 2010, the company, which makes Nerf foam products and the Monopoly game, expects a modest increase in earnings per share from $2.48 a share reported for 2009, excluding a favorable tax adjustment during the fourth quarter.

Analysts were expecting earnings per share of $2.69.

Shares of Hasbro closed at $44.65 on Thursday on Nasdaq. They were down 5 percent at $42.50 on Friday in trading before the bell.

(Reporting by Viraj Nair in Bangalore; Editing by Jarshad Kakkrakandy)

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