PROVIDENCE, R.I. (AP) – Hasbro Inc., the nation’s second biggest toymaker, reported Monday that earnings grew 4 percent in the third quarter as revenue was boosted by strong sales of games and “Star Wars” products.

But the results missed Wall Street expectations, and shares fell 2 cents to close at $18.70 in trading on the New York Stock Exchange.

Hasbro earned $92.1 million, or 47 cents per share, for the three months ended Sept. 25, up from $88.7 million, or 43 cents per share a year ago. Analysts surveyed by Thomson Financial expected earnings of 51 cents per share on sales of $997.1 million.

Revenue rose 4 percent, to $988.1 million from $947.3 million, helped by a $5.9 million currency exchange gain and strong sales of “Star Wars” products and games.

“Our performance, year-to-date, along with the diversity, strength and innovation in our product line, reinforces the confidence we have in our ability to achieve our full-year financial goals,” said Alfred Verrecchia, Hasbro’s president and chief executive. “It’s important however, to keep in mind that there is still a lot of business to be done in the fourth quarter.”

The company said games revenue grew by 7 percent, driven by the performance of board and electronic games including Candy Land and Monopoly, as well as other titles. Revenue from its U.S. toys segment climbed 6 percent on sales of its “Star Wars” products and its Furby, Nerf, Transformers, Playskool and Littlest Pet Shop brands.

Hasbro is the second biggest U.S. toymaker after Mattel Inc., which reported earlier Monday that its third-quarter profit fell 12 percent.

as lower Barbie sales offset higher sales in much of the rest of its product portfolio.

Verrecchia said it was unclear how consumers would be affected by higher gasoline and home heating costs, especially as the holiday season approaches.

“Holiday spending will come, and people are going to buy toys and games,” Verrecchia told investors during a morning conference call.

He declined to give a forecast for the next quarter. “You’ll have to wait until after Christmas,” he said.

The company continued to benefit from sales of products linked with the movie, “Star Wars Episode III – Revenge of the Sith,” released on May 19.

Despite the end of the Star Wars film franchise, Verrecchia said he thinks it will continue to be a strong brand, and said the company has new items to take up any slack.

Executives said Hasbro is finalizing plans to repatriate overseas earnings next quarter under the American Jobs Creation Act, a major corporate tax law created last year. The company said in July it expects to bring back $500 million to $550 million, and would pay between $35 million and $45 million in taxes, depending on the amount repatriated.

Hasbro spokesman Wayne Charness said the company is looking at different options to use the repatriated money, but would not disclose them.

AP-ES-10-17-05 1714EDT