Hasbro Inc reported a higher-than-expected quarterly profit on Monday, boosted by demand for movie-related toys, although revenue fell short of expectations.
The world's No. 2 toymaker behind Mattel Inc also said its full-year revenue will rise if consumer sales trends continue to improve in line with recent trends in the current quarter.
Hasbro, known for its Transformers and Playskool brands, said third-quarter net profit rose to $150.4 million, or 99 cents a share, from $138.2 million, or 89 cents a share, a year earlier.
Net revenue was $1.28 billion, down from $1.30 billion a year earlier.
Analysts on average were expecting a profit of 93 cents a share, on revenue of $1.32 billion, according to Thomson Reuters I/B/E/S.
Revenue fell in the company's U.S. and Canada segment and international segment, but rose in the entertainment and licensing segment.
The company formed a joint venture earlier this year with Discovery Communications Inc to create a television network aimed at children.
Hasbro has an advantage over rival Mattel Inc this year, due to its lineup of toys tied to movies such as Transformers - Revenge of the Fallen and G.I. Joe - The Rise of the Cobra.
Hasbro is also expected to benefit from movie-related toys next year, when it will also have toys tied to the Iron Man 2 and Toy Story 3 movies.
Last week, Mattel, which makes Barbie and Elmo dolls, posted a smaller-than-expected drop in quarterly revenue, helped by gains in its Hot Wheels and American Girl brands.
Both Mattel and Hasbro still face price pressure as key retailers Wal-Mart Stores Inc and Target Corp have already begun offering steep discounts to woo shoppers ahead of the all-important holiday season.
(Reporting by Martinne Geller; Editing by Derek Caney)