Financial Data and Key Metrics Changes - In Q4 2024, total Hasbro revenue was $1.1 billion, down 3% excluding the eOne divestiture, and down 15% including eOne [41] - For the full year, total Hasbro revenue was $4.1 billion, down 7% excluding eOne, and down 17% including eOne [44] - Adjusted operating profit for Q4 was $113 million, with an adjusted operating margin of 10.2%, a 14-point improvement year-on-year [43] - Full year adjusted net earnings were $563 million, leading to a $4.01 earnings per diluted share [47] Business Line Data and Key Metrics Changes - Wizards of the Coast revenue grew 4% for the full year, with a record profit margin of 41.8%, a six-point improvement over last year [44][45] - Consumer Products revenue declined 12% for the full year, but brands like Beyblade, Furby, and My Little Pony saw growth [45] - The Entertainment segment revenue declined by 88% due to the sale of eOne, but excluding this impact, revenue declined 4% [46] Market Data and Key Metrics Changes - The toy industry is expected to be flat over the next three years, with growth peaks driven by strength in broader entertainment [50] - Hasbro's licensing business has grown by 60% over the last three years, making it the third largest entertainment licensor globally [22] Company Strategy and Development Direction - Hasbro's new strategic plan, "Playing to Win," focuses on play and partnerships, aiming for a return to growth and profitability [19][31] - The strategy includes five key building blocks: aging up play experiences, leadership in digital play, expansion in fashion and collectibles, partnerships, and profitable franchises [26][30] - The company plans to increase its cost-saving target from $750 million to $1 billion by 2027 [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core business's momentum, particularly in Wizards and digital games, while acknowledging challenges in certain segments like NERF and Star Wars [41][45] - The company anticipates modest revenue growth in 2025, with continued margin expansion and a mid-single-digit revenue CAGR projected through 2027 [31][62] Other Important Information - Hasbro reduced debt by $83 million in Q4, bringing the gross leverage ratio to 3.2 times adjusted EBITDA [48] - The company plans to diversify its manufacturing footprint to reduce reliance on China, aiming to decrease the percentage of US toy volume from China to under 40% over the next two years [61] Q&A Session Summary Question: Consumer Products top line guidance and market share performance - Management expects the toy industry to be flattish in 2025, with trading cards and building blocks driving growth [70] - Closeout volume was down, impacting top line and share results, but management anticipates share gains in many categories despite challenges with Star Wars and NERF [75] Question: Clarification on medium-term guidance and self-publishing video games - Margin expansion is cumulative, with a goal of growing 50 to 100 basis points each year [79] - Video game launches will contribute to revenue and profit, but will also impact margins due to capitalized expenses [80] Question: MAGIC business and upcoming launches - Final Fantasy is expected to be a best-selling MAGIC set, with strong pre-order demand [91] - Spider-Man is anticipated to perform well, although it will be a smaller release compared to Final Fantasy [93] Question: Medium-term guidance and growth drivers - Growth is expected from MAGIC, a stronger entertainment slate, and the video game launch of Exodus [100] Question: Tariffs and guidance assumptions - The guidance primarily considers the impact of tariffs from China, with minimal sourcing from Canada and Mexico [114] Question: Profitability and debt paydown implications - EBITDA projections align with the company's targets, but tax rates and interest expenses may impact earnings per share in 2025 and 2026 [128]

Hasbro (HAS) Q4 2024 Earnings Call February 20, 2025 07:18 PM ET Company Participants Kern Kapoor - SVP - Investor RelationsChris Cocks - Chief Executive OfficerGina Goetter - CFO & COOFred Wightman - DirectorArpine Kocharian - Executive DirectorAlexander Perry - Director, Equity ResearchStephen Laszczyk - Vice PresidentKylie Cohu - Consumer Equity Research Conference Call Participants Megan Clapp - Equity Research AnalystChristopher Horvers - Senior AnalystEric Handler - MD & Senior Research AnalystJames H ...

Q4 & Full Year 2024 Earnings FEBRUARY 20, 2025 USE OF NON-GAAP FINANCIAL MEASURES Supplemental Financial Data The financial tables accompanying this presentation include non-GAAP financial measures as defined under SEC rules, specifically Adjusted operating profit. Adjusted operating margin, Adjusted net earnings and Adjusted net earnings per diluted share, which exclude, where applicable, acquisition-related costs, acquired intangible amortization, strategic transformation initiatives, restructuring and se ...

Hasbro (HAS) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 21.05%. A quarter ago, it was expected that this toy maker would post earnings of $1.31 per share when it actually produced earnings of $1.73, delivering a surprise of 32.06%.Over the last four quarters, the company has surp ...

Revenue Performance - Full year 2024 revenue declined 17% primarily due to the eOne divestiture; excluding this impact, revenue declined 7%[3] - Total net revenues for the year ended December 29, 2024, were $4,135.5 million, a decrease of 17.3% compared to $5,003.3 million for the year ended December 31, 2023[26] - Fourth quarter 2024 revenue declined 15%; excluding the eOne divestiture, revenue declined 3%[8] - Total company external net revenues decreased by 15% to $1,101.6 million for the three months ended December 29, 2024, compared to $1,288.9 million for the same period in 2023[28] - For the year ended December 29, 2024, total external net revenues were $4,135.5 million, down 17% from $5,003.3 million in 2023[30] Profitability - Adjusted operating profit for 2024 was $839 million, an increase of $362 million compared to the previous year, with an adjusted operating margin of 20.3%[3] - Operating profit for the year ended December 29, 2024, was $690.0 million, compared to a loss of $1,538.8 million for the year ended December 31, 2023[26] - Operating profit improved to $59.8 million for the three months ended December 29, 2024, from a loss of $1,198.6 million in the same period of the previous year, representing a greater than 100% change[28] - The operating margin for the total company improved to 16.7% for the year ended December 29, 2024, compared to a negative margin of -30.8% in 2023[30] Earnings - Reported net earnings for 2024 were $2.75 per diluted share; adjusted net earnings were $4.01 per diluted share[3] - Net earnings for the year ended December 29, 2024, were $394.4 million, a significant recovery from a loss of $1,487.8 million in the previous year[27] - Hasbro reported a net loss attributable to the company of $34.3 million for the quarter ended December 29, 2024, compared to a net loss of $1,061.1 million for the same quarter in 2023[32] - Hasbro's net earnings attributable to the company for the year ended December 29, 2024, were $385.6 million, a recovery from a loss of $1,489.3 million in 2023[35] - Hasbro's diluted earnings per share for the quarter was $(0.25), improving from $(7.64) in the prior year quarter[35] Cash Flow and Liquidity - Operating cash flow for 2024 was $847 million, up from $726 million in the prior year, driven by improved profitability and working capital[4] - Cash and cash equivalents increased to $695.0 million as of December 29, 2024, up from $545.4 million at the end of the previous year[27] - The company reported a net cash provided by operating activities of $847.4 million for the year ended December 29, 2024, compared to $725.6 million in the previous year[27] Cost Management - The company delivered $370 million in gross cost savings and $227 million in net cost savings for 2024[3] - The cost of sales as a percentage of net revenues improved to 28.5% for the year ended December 29, 2024, down from 34.1% in the previous year[26] Debt and Liabilities - Long-term debt increased to $3,380.8 million as of December 29, 2024, compared to $2,965.8 million at the end of the previous year[25] - Total liabilities decreased to $5,155.3 million as of December 29, 2024, from $5,453.9 million as of December 31, 2023[25] - Hasbro plans to continue paying down debt and progress towards leverage targets in 2025[15] Dividends - Hasbro declared a quarterly cash dividend of $0.70 per common share, payable on March 12, 2025[11] - The company declared cash dividends of $2.10 per share for the year ended December 29, 2024, consistent with the previous year's $2.80 per share[26] Segment Performance - Digital and Licensed Gaming revenue increased 22%, with Monopoly Go! contributing $112 million for the full year 2024[7] - Consumer Products segment net revenues slightly decreased by 1% to $746.3 million, while operating profit increased significantly from a loss of $126.2 million to $50.5 million[28] - Wizards of the Coast and Digital Gaming segment net revenues decreased by 7% to $339.0 million, with operating profit declining by 22% to $80.9 million[28] - Entertainment segment net revenues plummeted by 91% to $16.3 million, with an operating loss of $16.2 million compared to a loss of $1,110.1 million in the previous year[28] - Franchise Brands net revenues decreased by 4% to $3,120.9 million for the year ended December 29, 2024[31] - North America saw a 2% increase in Consumer Products segment net revenues to $421.0 million, while Europe experienced a 10% decline to $177.9 million[29] Impairments and Losses - The company incurred $1,011.0 million in impairment of goodwill and intangible assets related to the eOne Film and TV business in 2023[35] - The company experienced a loss on disposal of business amounting to $37.4 million for the year ended December 29, 2024, down from $539.0 million in the previous year[27] - The loss on disposal of the eOne Film and TV business was $13.0 million for the quarter, compared to $66.0 million in the same quarter last year[33] - The company recorded an impairment of $78.2 million ($59.8 million after-tax) related to its Discovery JV investment in Q4 2024[37] - Impairment of goodwill and intangible assets in the Entertainment segment was $1,011 million ($998.3 million after-tax) for Q4 2023[37] Strategic Initiatives - Strategic transformation initiatives costs for the quarter were $9.8 million, reflecting ongoing efforts to improve business processes[33] - eOne Film and TV business divestiture costs amounted to $3.2 million ($2.4 million after-tax) for Q4 2024 and $18.2 million ($21.0 million after-tax) for Q4 2023[36] - Total costs related to the eOne Film and TV business for the year ended December 31, 2023 were $35.1 million ($34.0 million after-tax)[36]

Hasbro, Inc. (HAS) is scheduled to report fourth-quarter fiscal 2024 results on Feb. 20, 2025, before the opening bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last quarter, the company reported adjusted earnings per share (EPS) of $1.73, which beat the Zacks Consensus Estimate of $1.31 by 32.1%. The bottom line improved 5.5% year over year.The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, delivering an a ...

Analysts on Wall Street project that Hasbro (HAS) will announce quarterly earnings of $0.36 per share in its forthcoming report, representing a decline of 5.3% year over year. Revenues are projected to reach $1.03 billion, declining 20.4% from the same quarter last year.The consensus EPS estimate for the quarter has been revised 1.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. ...

The latest trading session saw Hasbro (HAS) ending at $59.72, denoting a -0.62% adjustment from its last day's close. This change lagged the S&P 500's 0.27% loss on the day. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.03%.Prior to today's trading, shares of the toy maker had gained 6.13% over the past month. This has lagged the Consumer Discretionary sector's gain of 7.78% and outpaced the S&P 500's gain of 4.27% in that time.The upcoming earnings release of Has ...

Company Performance - Hasbro's stock closed at $57.15, reflecting a +0.9% change from the previous session, outperforming the S&P 500's daily gain of 0.72% [1] - Over the past month, Hasbro's shares experienced a loss of 0.44%, underperforming the Consumer Discretionary sector's gain of 2.95% and the S&P 500's gain of 1.02% [1] Upcoming Earnings Report - Hasbro is set to release its earnings on February 20, 2025, with an expected EPS of $0.36, indicating a 5.26% decline compared to the same quarter last year [2] - The consensus estimate for revenue is $1.03 billion, down 20.39% from the prior-year quarter [2] Analyst Projections - Recent shifts in analyst projections for Hasbro should be monitored, as positive estimate revisions can indicate optimism about the company's business outlook [3] - Changes in estimates are believed to have a direct relationship with upcoming stock price performance [4] Zacks Rank and Valuation - Hasbro currently holds a Zacks Rank of 3 (Hold), with a 3.16% fall in the Zacks Consensus EPS estimate over the past month [5] - The company is trading with a Forward P/E ratio of 13.11, which is a premium compared to the industry's average Forward P/E of 12.2 [6] - Hasbro's PEG ratio is currently 0.49, while the Toys - Games - Hobbies industry has an average PEG ratio of 0.85 [6] Industry Context - The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector and holds a Zacks Industry Rank of 39, placing it in the top 16% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

The latest trading session saw Hasbro (HAS) ending at $58.55, denoting a +0.45% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 0.47%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq depreciated by 0.51%.The toy maker's shares have seen an increase of 4.26% over the last month, surpassing the Consumer Discretionary sector's gain of 2.51% and the S&P 500's gain of 1.67%.The investment community will be closely monitoring the ...