Toymaker Hasbro topped Wall Street profit and sales estimates yesterday as strong overseas demand helped offset weakness at home, sending its shares to a new high.

Hasbro, the second-largest US toymaker, said it believes it can garner “more than its fair share” of holiday-season sales, even with a more challenging consumer environment, as it rolls out new games, focuses on brands that are selling well, and works with retailers on promotions.

Both Hasbro and larger rival Mattel, which also beat analysts' expectations for the third quarter, are gearing up for the holidays, the biggest selling period of the year.

Shares of Hasbro, known for brands such as Monopoly, Nerf and My Little Pony, were up 6.6 per cent at $50.41 after hitting a new high of $51.68. Mattel shares rose 0.5 per cent to $42.91.

Hasbro should also benefit from Transformers and Spider-Man movies in 2014 and from Star Wars and Avengers movies in 2015, analysts said, as the company has toys linked to those films.

Mattel has "good prospects, but it doesn't have as clearly visible a catalyst for sustained revenue growth as Hasbro has," said Needham & Co analyst Seán McGowan.

Hasbro's US business is "poised for future growth" with work being done on the company's brands as well as the upcoming entertainment launches, chief executive Brian Goldner said during a conference call. Also, the Big Hugs Elmo toy that debuted this year is "off to a strong start", he said.

Like Mattel, Hasbro was able to use strength in sales outside North America to offset weakness in the US and Canada during the third quarter. Revenue rose 11 per cent to $582.7 million at Hasbro’s international unit, but fell 5 per cent to $735.6 million in the US and Canada.

Net earnings rose to $193.0 million, or $1.46 a share, from $164.9 million, or $1.24 a share, a year earlier. – (Reuters)