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By Kosaku Narioka

 
Sanrio Co. shares rose sharply Wednesday morning after the owner of Hello Kitty posted strong first-quarter results and boosted its fiscal-year earnings guidance.
 
The Japanese company's shares were recently 13% higher at 3,435 yen after rising as much as 16% earlier.

      

       
Sanrio said Tuesday after market close that operating profit rose to Y2.38 billion ($17.9 million) for the quarter ended June. That compared with an operating loss of Y59 million a year earlier.
 
Revenue jumped 28% from a year earlier to Y13.83 billion as the pandemic subsided and stores and theme parks operated more normally.
 
Net profit fell due partly to one-off tax expenses.
 
The company raised its earnings forecasts for the fiscal year ending March 2023. It now expects revenue to rise 8.8% to Y57.40 billion and net profit to fall 27% to Y2.50 billion versus its previous view of Y2.10 billion.
 
Sanrio had said in June that it planned to give an Alibaba Pictures Group Ltd. unit a character-use license for mainland China for a period of five years, starting January 2023.
 
Write to Kosaku Narioka at kosaku.narioka@wsj.com

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