News

Hasbro Inc. Reports Revenue Beat

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Andrew R. Michaud

• August 06, 2023

Hasbro Inc. (HAS, -0.28%) saw a 2.5% increase in premarket trading after surpassing its revenue target for the latest quarter, despite falling short on adjusted earnings. The renowned toy maker revealed a second-quarter loss of $235 million, or $1.69 per share, compared to a profit of $1.42 million, or $1.02 per share, from the same period last year.

Although adjusted earnings for the three months ending June 30 were 49 cents per share, lower than the analyst forecast of 56 cents per share according to FactSet data, it is worth emphasizing that revenue decreased by 10% to $1.21 billion—an impressive feat considering it exceeded the analyst estimate of $1.12 billion.

Chris Cocks, the CEO of Hasbro, expressed satisfaction with the company's performance for the quarter. He highlighted the successful reduction in inventory and progress made on cost-saving initiatives. Cocks attributed the solid results to the growth of Hasbro's Transformers franchise, the revival of Furby, and the highly anticipated release of Magic: The Gathering's Universes Beyond set.

Looking ahead, Hasbro has set its sights on a targeted revenue decline between 3% and 6% for 2023.

Key Takeaways

• Hasbro Inc. stock (HAS, -0.28%) witnessed a 2.5% increase in premarket trades.
• Despite missing on adjusted earnings, the company reported better-than-expected revenue for the quarter.
• Second-quarter loss amounted to $235 million, compared to previous year's profit of $1.42 million.
• Adjusted earnings per share for the three-month period were 49 cents, falling short of analyst expectations.
• Revenue surpassed estimates, reaching $1.21 billion despite a 10% drop.
• CEO Chris Cocks highlighted the company's successful inventory reduction and progress on cost-cutting initiatives.
• The growth of Transformers franchise, the revival of Furby, and the release of Magic: The Gathering's Universes Beyond set contributed to the positive results.
• Hasbro aims for a revenue decline of 3% to 6% in 2023.