Shares of toy maker Hasbro Inc. (HAS) rose in early morning trading after the toy maker posted better-than-expected earnings for its fourth quarter before the market opened.

Going into the earnings report, analysts had been expecting to see Hasbro report earnings of $0.92 per share, but actual earnings came in at $0.99. Earnings were down though from $1.09 during the same period last year.

Perhaps it is the cynic in me, but I was not surprised to read this story about Wal-Mart Stores Inc. (WMT) from Bloomberg. The news outlet obtained an e-mail that was sent to Walmart managers instructing them to raise prices on an average of 1,800 types of toys per store. The managers were instructed to perform the price markups "as soon as possible" and were told that the price changes were "to better enable your store and the company to have a successful financial month."

Walmart stated that these price increases went into effect because temporary discounts on products (including toys) ended on November 30. Spokesman Ravi Jariwala, spokesman for Walmart, said in an e-mail, "Once a rollback ends, the item returns to its original everyday low price." That said, Eric Johnson director of the Center for Digital Strategies at the Tuck School of Business at Dartmouth noted that "In previous years Wal-Mart has come out and hammered everyone with unbelievably low toy prices ... They stepped away from that this year and after Thanksgiving their prices have crept back up."

Toy manufacturer Mattel (MAT) announced Friday morning that its third-quarter earnings increased to $283.3 million, or 77 cents per share. The results were 23% better than last year's third-quarter earnings of 63 cents per share, or $229.8 billion.

As for sales, the toy maker pulled in $1.83 billion, which is 2% better than last year's same-quarter results. Compared to a year ago, the results were very solid; compared to expectations, the results are mixed. The Street expected MAT to earn 75 cents per share (which it beat by two cents per share) on sales of $1.94 billion (which MAT missed).

A situation rapidly taking shape on the West Coast may signal coming product changes for McDonald's Corp. (MCD). Investors however, appear to be rallying behind the perennial favorite, with shares of McDonald's trading up almost 1.25% as of this writing.

The issue stems from health concerns that are being voiced by local governments in California and possibly elsewhere. The assertion is that McDonald's Happy Meals, which are marketed towards children by the use of free toy giveaways, contain unacceptably high levels of sugars, sodium, and fats. Local politicians are forwarding the proposition that they shall ban McDonald's use of toys as a marketing tool if the company doesn't change the Happy Meal offering.

Toy titan Mattel (MAT) announced Friday morning that its second-quarter income more than doubled, driven by Barbies and "Toy Story 3" toys. MAT logged income of 14 cents per share during the quarter, far better than the six cents per share earned in the same quarter a year ago.

Unfortunately, while the earnings were far better than a year ago, the toymaker missed the Street's estimate by a penny. Revenue checked in at $1.02 billion, 13% better than last year and matching expectations.

Have you noticed Hasbro, Inc. (HAS) today? It hit a new 52-week high of $43.03 during the intraday session. It's pulled back a slight amount since that level was reached: at the time of this writing, shares were exchanging hands for $42.91. But the bigger technical story here is this new evidence of strength for the stock.

In this choppy market, it's important to note what's working. Hasbro certainly has been. Back in April, I wrote a bullish piece on the business. I'm still bullish.

Hasbro, Inc. (HAS) had a notable trading day. The company's shares hit a new 52-week high of $40.77 after the first-quarter earnings report was distributed to the market. Volume was strong during the session.

Quite frankly, I look upon Hasbro as a very viable candidate for investment capital. Why do I say this? Well, I think we've got a nice combination of technical and fundamental strength. And let us start with the technical side of things. Check out the one-year chart. Not a bad trend, huh? Wall Street is clearly positive on the future prospects of the toy maker. Put this chart together with the 52-week high and you've got yourself a compelling price-action thesis.

Toys R Us bought FAO Schwarz in May and is now ready to do something interesting with it.

It's a pretty bold move for a tough retail market. Toys R Us is opening FAO Schwarz boutiques in some of its stores. It's also relaunching the upscale toy seller's website, FAO.com. A year ago, this would have been suicide, but now, it might work out. With retailers in every sector fighting for an edge, this move may beef up the Toys R Us in-store experience, with the online play helping it reach higher-spending consumers that may not have access to an FAO brick-and-mortar spot.

Hasbro (NYSE: HAS) isn't doing too well today. Shares of the toy entity are down 3.5% at the time of this writing in early afternoon trading. Third-quarter results are the catalyst, apparently. Management must hate this, because on Friday, rival Mattel (NYSE: MAT) saw a bid after its own earnings release.

Hasbro's top line contracted 2%, and earnings per share, even with some dilution from a joint venture with Discovery Communications (NASDAQ: DISCA) and investments in Hasbro's virtual-studio initiative, increased 11% to 99 cents. Expectations were beat by six pennies. Gee, that was better than Mattel's performance. The maker of Barbie actually saw a per-share earnings decline and came in line with forecasts.

Toy maker Mattel (NASDAQ: MAT), whose competitors include Hasbro (NYSE: HAS) and JAKKS Pacific (NASDAQ: JAKK), issued its Q3 release this morning. The numbers weren't as fun as some of the company's products, but investors are giving the stock a healthy bid as I write this. What would be the reason behind such reaction, especially on a down day for the Dow?

First, here's the data. Sales decreased 8%. They were affected, in part, by currency translation. Earnings per share came in at 63 cents. This was two pennies below last year's income figure. According to Bloomberg, that profit performance misses expectations by a penny, but I've read other sources which report that Mattel met expectations. I think I'll call this one in line with projections.

In the current economic environment, a lot of companies are cutting back costs wherever they can in hopes of boosting earnings, but entertainment giant Walt Disney (NYSE: DIS) is taking a different approach and spending in hopes of boosting its sales.

Disney is hoping that by completely revamping its retail stores that it will be able to lure in more customers, keep them longer, and encourage more sales. In order to make the best of their new marketing direction, they have enlisted the aid of one of the greatest (in my opinion) retail designers out there, Steve Jobs.

I'm reiterating my Buy rating for Hasbro Inc. (NYSE: HAS), first recommended on June 22, 2009 at a price of $24.30, but there are qualifiers and conditions.

First, Hasbro is now a high-risk stock, a downgrade from the moderate-risk category in June, largely on the continuance of the 'frugal consumer' trend in the United States.

JAKKS Pacific (NASDAQ: JAKK) is in rough shape. Sure, the toy industry can be tough. Just ask Hasbro (NYSE: HAS) and Mattel (NYSE: MAT). Even with great brands stocking a powerhouse portfolio, getting, and then keeping, the attention of kids is a difficult task. Well, JAKKS Pacific not only has that challenge to contend with, it has others as well.

Let's start with the awful earnings report management released to the market after the bell on Tuesday. For the second quarter, the company lost 3 cents per share on an adjusted basis. This compares to a profit of 17 cents per share in the year-ago period. Revenues were flat and unexciting.

Game and toy maker Hasbro (NYSE: HAS) had its chance to impress Wall Street with its second quarter results Monday morning, and the company indeed did not disappoint, posting stronger than expected earnings.

Spurred by strong sales of G.I. Joe and Transformers toys, the company reported a 5% jump in profit with earnings of 26 cents per share. Going into today's earnings report analysts had expected earnings of just 23 cents per share.

Mattel, Inc. (NYSE: MAT) is all about fun and games, but it doesn't play around when it competes against Hasbro, Inc. (NYSE: HAS) and JAKKS Pacific (NASDAQ: JAKK). In fact, the stock is up over 7% today as of this writing on the toy manufacturer's earnings news. According to Reuters, Mattel made 6 cents per share during the second quarter, beating estimates by a whopping five pennies.

Pretty good news for Mattel, considering it's been having trouble lately with its Barbie line. Mattel has also had problems with its top-line sales. They dropped 19% in Q2. Fluctuations in the value of the dollar helped to hinder the sales picture, but make no mistake -- Mattel has to step things up a couple notches to keep the top line healthy. Toys are a difficult category to sell during a recession. And when toys do sell, even during the Christmas retail period, they might not command top dollar. Hot toys do, of course, but an entire portfolio cannot necessarily be saved by a single fad item.