SAN DIEGO, Nov. 14, 2024 /PRNewswire/ -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers of Hasbro, Inc. (NASDAQ: HAS) common stock between February 7, 2022 and October 25, 2023, inclusive (the "Class Period"), have until January 13, 2025 to seek appointment as lead plaintiff of the Hasbro class action lawsuit. Captioned West Palm Beach Firefighters' Pension Fund v. Hasbro, Inc., No. 24-cv-08633 (S.D.N.Y.), the Hasbro class action lawsuit charges Hasbro and certain of Hasbro's top ...

SAN DIEGO, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Robbins Geller Rudman & Dowd LLP announces that the Hasbro class action lawsuit seeks to represent purchasers of Hasbro, Inc. (NASDAQ: HAS) common stock between February 7, 2022 and October 25, 2023, inclusive (the “Class Period”). Captioned West Palm Beach Firefighters’ Pension Fund v. Hasbro, Inc., No. 24-cv-08633 (S.D.N.Y.), the Hasbro class action lawsuit charges Hasbro and certain of Hasbro’s top current and former executives with violations of the Securitie ...

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Core Insights - Hasbro is experiencing challenges from a weak 2023, leading to excess inventory and a need to streamline its business by shedding less profitable segments [1][2] - The company reported a 15% decline in revenue for the third quarter, with the core toy segment down 10% and the Wizards of the Coast and Digital Gaming division also down 10% [1][2] - Despite the revenue decline, Hasbro posted earnings of $1.59 per share, a turnaround from a loss of $1.23 per share in the same quarter last year [2] Financial Performance - Revenue for the third quarter was $1.28 billion, slightly below expectations of $1.30 billion [2] - Excluding the impact of the divestiture of eOne, revenue would have declined by 9% instead of 15% [2] - The company’s stock fell nearly 6% following the earnings report [1] Strategic Initiatives - Hasbro is in a multi-year plan to shift its revenue mix towards games, digital, and intellectual property licensing, which are seen as the future of play [3] - The CEO noted improvements in margins, inventory levels, and cost structure, indicating progress in the turnaround plan [3] - Key initiatives in digital, licensing, and product innovation are starting to yield positive results [3] Product Performance - The Magic: The Gathering brand saw a 3% increase in revenue, and the Monopoly Go! digital game contributed $30 million during the quarter [5] - Sales of Transformers toys are expected to rise due to the recent Transformers movie, while Play-Doh is also performing well with a new product expected to be a holiday bestseller [5] Market Outlook - Analysts believe Hasbro is aware of the need to address declines in key categories like Star Wars and Nerf, and is taking steps to improve [6] - The holiday season may be challenging, but there is optimism for 2025 as the toy industry evolves [6][7] - Hasbro is seen as having the potential to turn challenges into opportunities despite facing significant hurdles [7]

Core Viewpoint - Hasbro, Inc. reported mixed results for the third quarter of fiscal 2024, with earnings exceeding expectations while revenues fell short, leading to a 3.6% decline in stock price during pre-market trading on October 24 [1]. Earnings & Revenues - Adjusted earnings per share (EPS) for the third quarter were $1.73, surpassing the Zacks Consensus Estimate of $1.31, and up from $1.64 in the same quarter last year [2]. - Net revenues were $1.28 billion, missing the consensus estimate of $1.29 billion, and representing a 14.8% decline from $1.5 billion in the prior year [2]. Brand Performances - Franchise Brands generated revenues of $941.6 million, down 7% year over year, with expectations set at $1.03 billion [3]. - Partner Brands saw revenues drop 17% year over year to $190.1 million, against an expected $151.6 million [3]. - Portfolio Brands reported revenues of $149.6 million, a 12% decrease from the previous year, while estimates were at $127.9 million [3]. - Total gaming category revenues fell 6% year over year to $593.2 million [3]. Segmental Revenues - Consumer Products segment revenues decreased 10% year over year to $860.1 million, attributed to discontinued brands and lower volume, with an adjusted operating margin of 15.1% [4]. - Revenues from the Wizards of the Coast and Digital Gaming segment totaled $404 million, down 4.6% from $423.6 million in the prior year, with an adjusted operating margin of 44.9% [4]. - The Entertainment segment's revenues plummeted 86% year over year to $17.2 million, with an adjusted operating margin of 76.7% [4]. Operating Highlights - Cost of sales as a percentage of net revenues was 29.6%, down from 32.9% in the previous year [5]. - Selling, distribution, and administration expenses were $299.3 million, compared to $352.3 million in the prior year [5]. - Adjusted EBITDA for the quarter was $406.4 million, slightly up from $401.5 million a year ago [5]. Balance Sheet - As of September 29, 2024, cash and cash equivalents stood at $696.1 million, a significant increase from $185.5 million as of October 1, 2023 [6]. - Inventories totaled $375.4 million, down from $617.7 million a year ago [6]. - Long-term debt decreased to $3.46 billion from $3.65 billion as of October 1, 2023 [6]. Updated 2024 Outlook - For 2024, Hasbro projects Consumer Products revenues to decline by 12-14%, revised from an earlier estimate of 7-11%, with an expected operating margin of 4-6% [7]. - Revenues for the Wizards of the Coast segment are projected to be flat to down 1%, with an operating margin around 42% [7]. - The Pro-Forma Entertainment segment is expected to see a revenue decline of $15 million from the previous year, with an anticipated adjusted operating margin of approximately 60% [7]. - Total adjusted EBITDA for the full year is expected to range between $975 million and $1.025 billion [7].

Financial Data and Key Metrics Changes - Total Hasbro revenue for Q3 2024 was $1.3 billion, down 15% year-over-year. Excluding the eOne divestiture, total revenue was down 9% [17] - Adjusted operating profit was $329 million, with an adjusted operating margin of 25.7%, up 2.9 points from the previous year [17] - Q3 adjusted net earnings were $244 million, with diluted earnings per share of $1.73, an increase of $0.09 from the prior year [18] - Year-to-date total revenue was approximately $3 billion, down 18% compared to the same period last year, with adjusted operating profit at $726 million and an adjusted operating margin of 23.9%, up approximately 10 points year-over-year [18][19] Business Line Data and Key Metrics Changes - The Wizards segment revenue declined 5% in Q3, with Magic: The Gathering growing 3% due to new releases [19] - Consumer Products revenue declined 10%, driven by exited brands and reduced closeouts, although there was growth in licensed consumer products [20] - The Entertainment segment saw an 86% decline due to the eOne divestiture, with adjusted operating margin for Consumer Products at 15.1%, up 3.9 points compared to last year [17][21] Market Data and Key Metrics Changes - The toy industry, excluding building blocks, is expected to decline low single digits to low mid-single digits, with Hasbro's POS down high single digits year-to-date, but expected to improve in Q4 [54] - Retail sentiment remains positive ahead of the holiday season, with strong support from retail partners [56] Company Strategy and Development Direction - Hasbro is focusing on digital, licensing, and product innovation to drive profitability and cash flow, with a strategic shift towards games and IP licensing [4][12] - The company is prioritizing profitable revenue, reducing closeout volume, and enhancing supply chain productivity [15][20] - Future growth is anticipated from collaborations with Marvel and new product launches in the gaming segment [10][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term health of brands like Magic and D&D, with a solid return to profitability expected in 2024 and beyond [4][12] - The company is lowering its full-year revenue guidance for Consumer Products but expects improved profitability and cash flow [4][23] - Management noted that while Q4 will see a decline in revenue, they anticipate a stabilization in the Consumer Products business [23] Other Important Information - Hasbro's inventory is at multi-year lows, down 40% year-over-year, contributing to improved gross margins [15] - The company is on track to achieve $750 million in gross cost savings through 2025, with $240 million delivered in the first nine months of the year [24] Q&A Session Summary Question: Monopoly Go! marketing and revenue expectations - Management indicated confidence in maintaining a $10 million monthly royalty revenue from Monopoly Go!, despite download declines, due to strong user engagement and marketing strategies [26][27] Question: Consumer Products guidance and POS expectations - The guidance for Consumer Products was adjusted down due to closeout volume and weaker performance from entertainment-backed brands, but POS expectations remain stable [30][31] Question: Impact of exited brands on revenue - Approximately $25 million in revenue impact from exited brands was noted for both Q3 and Q4, with expectations for improvement in 2025 as the impact diminishes [37][38] Question: Future of Baldur's Gate 3 and Magic: The Gathering - Management expects continued revenue from Baldur's Gate 3 and anticipates a decline for Magic in Q4 due to set timing, but overall growth for Magic is expected in 2025 [44][45] Question: Retail sentiment and holiday season expectations - Retail sentiment is positive, with expectations for modest declines in the toy industry, while specific brands like Play-Doh and Beyblade are highlighted as strong performers for the holiday season [56][58]

Hasbro (HAS) reported $1.28 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 14.8%. EPS of $1.73 for the same period compares to $1.64 a year ago.The reported revenue represents a surprise of -1.09% over the Zacks Consensus Estimate of $1.3 billion. With the consensus EPS estimate being $1.31, the EPS surprise was +32.06%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...

Hasbro (HAS) came out with quarterly earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 32.06%. A quarter ago, it was expected that this toy maker would post earnings of $0.77 per share when it actually produced earnings of $1.22, delivering a surprise of 58.44%.Over the last four quarters, the company has surp ...

Group 1 - Hasbro has consistently beaten earnings estimates, with an average surprise of 92.18% over the last two quarters [1] - In the most recent quarter, Hasbro reported earnings of $1.22 per share, exceeding the expected $0.77 per share by 58.44% [1] - For the previous quarter, Hasbro's earnings of $0.61 per share surpassed the consensus estimate of $0.27 per share, resulting in a surprise of 125.93% [1] Group 2 - Recent estimates for Hasbro have been moving higher, indicating positive sentiment among analysts [2] - Hasbro has a positive Earnings ESP of +0.47%, suggesting analysts are optimistic about the company's earnings prospects [3] - The next earnings report for Hasbro is expected to be released on October 24, 2024 [3] Group 3 - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [2] - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [3] - A negative Earnings ESP does not necessarily indicate an earnings miss, but it reduces the predictive power of the metric [3]

Hasbro, Inc. (HAS) is scheduled to report third-quarter fiscal 2024 results on Oct. 24, 2024, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 58.4%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Q3 EstimatesThe Zacks Consensus Estimate for earnings is pegged at $1.34 per share, indicating a decline of 18.3% from $1.64 reported a year ago.For revenues, the consensus estimate is pegged at $1.30 billion, suggestin ...