Core Insights - Hasbro's stock surged 13.2% after significantly exceeding analyst expectations for sales and earnings, reporting earnings of $0.46 per share and sales of $1.1 billion, compared to expectations of $0.35 per share and just over $1 billion in sales [1][2] Financial Performance - Despite beating estimates, Hasbro experienced a 15% year-over-year decline in sales, primarily due to the divestiture of its eOne media and production business, while its Wizards of the Coast subsidiary saw a 7% sales decrease [2] - On a GAAP basis, Hasbro reported a loss of $0.25 per share for the quarter, with a full-year sales decline of 17%, although Wizards of the Coast achieved a 4% sales growth, and full-year earnings were positive at $2.75 per share [3] Future Outlook - Hasbro provided updated guidance, forecasting an end to revenue declines with slight revenue growth in constant currency, and projected adjusted EBITDA between $1.1 billion and $1.15 billion for the coming year [4] - If Hasbro meets its targets and achieves earnings of $5.50 per share, the current share price of $70 would reflect a price-to-earnings valuation of 12.7x, which is considered attractive compared to Wall Street's forecasts for 2025 earnings [5]

Core Insights - Hasbro reported stronger-than-expected earnings growth despite a revenue decline, indicating profitability improvements and a better-than-anticipated earnings per share (EPS) [1][2] - The adjusted EPS was $0.46, exceeding the expected $0.35 by 31.4%, while revenue was $1.10 billion, above the estimate of $1.035 billion but down 15% year-on-year [2][3] Financial Performance - Adjusted EPS for Q4 2024 was $0.46, a 21% increase from $0.38 in Q4 2023 [3] - Revenue decreased to $1.10 billion from $1.29 billion in Q4 2023, reflecting a 15% year-on-year decline [3] - The adjusted operating margin improved to 10.2%, up 14.1 percentage points from a negative 3.9% in the previous year [3] - Net earnings (adjusted) rose to $64.3 million, a 23% increase from $52.3 million in Q4 2023 [3] Business Overview - Hasbro is a leader in toy and board game manufacturing, with a diverse portfolio including brands like Magic: The Gathering, Dungeons & Dragons, and Monopoly [4] - The company is focusing on its Blueprint 2.0 initiative, which emphasizes operational efficiency, profitability through core brands, and a digital-first approach [5][6] Segment Performance - The Wizards of the Coast and Digital Gaming division saw a 20% rise in operating profit, despite a 7% revenue dip due to a slower release cycle [7] - The Consumer Products sector experienced a 12% annual revenue decline but improved its operating margin to 6.0% through cost-control measures [8] - The Entertainment division faced an 88% revenue drop due to the eOne divestiture, but the adjusted operating margin increased to 61.4% [9] Financial Health - Hasbro reduced its debt by $83 million to $3.38 billion and generated $587.6 million from operating activities, reflecting a focus on maintaining healthy cash flow [10] - The quarterly dividend of $0.70 per share remained unchanged, indicating a commitment to shareholder returns [10] Future Outlook - Management projects slight revenue growth in 2025, with an adjusted operating margin of 21%-22% and adjusted EBITDA expected between $1.1 billion and $1.15 billion [12] - The company aims to leverage strengths in gaming and digital channels, focusing on consumer engagement through direct platforms and digital offerings [13]

Core Insights - Hasbro, Inc. reported fourth-quarter fiscal 2024 results with earnings and revenues exceeding Zacks Consensus Estimates, although revenues declined year over year while earnings increased [1][4]. Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were 46 cents, surpassing the Zacks Consensus Estimate of 38 cents, and up from 38 cents in the same quarter last year [4]. - Net revenues for Q4 2024 were $1.1 billion, beating the consensus mark of $1.03 billion, but down 14.5% from $1.29 billion in the prior year [4]. - For the full year 2024, net sales totaled $4.13 billion compared to $5 billion in 2023, while net income rose to $562.8 million from $348.8 million in 2023 [12]. Brand Performance - Franchise Brands reported revenues of $786.2 million, a decrease of 7% year over year [5]. - Partner Brands saw an 18% year-over-year revenue increase to $181 million [5]. - Portfolio Brands revenues were $134.4 million, down 11% from the previous year [5]. - Total gaming category revenues fell 5% year over year to $542.5 million [6]. Segment Analysis - Consumer Products segment revenues decreased 1% year over year to $746.3 million, with an adjusted operating margin of 8% compared to negative 15.3% in the prior year [7]. - The Wizards of the Coast and Digital Gaming segment's revenues totaled $339 million, down 7% from $363.2 million in the previous year, with an adjusted operating margin of 23.9% [8]. - The Entertainment segment's revenues plummeted 91% year over year to $16.3 million, with an adjusted operating margin of 1.2% [8]. Operational Highlights - Cost of sales as a percentage of net revenues was 32.6%, down from 44.5% in the year-ago quarter [9]. - Selling, distribution, and administration expenses were $360.6 million, down from $430.4 million in the prior year [10]. - Adjusted EBITDA for Q4 was $164.8 million, significantly up from $10.6 million a year ago [10]. Strategic Initiatives - Hasbro introduced a new strategic plan, "Playing to Win," aimed at expanding its global reach and enhancing profitability, targeting an audience growth from 500 million to over 750 million [2][14]. - The company projects mid-single-digit revenue growth and annual operating margin improvements of 50-100 basis points through 2027 [2]. - Hasbro aims for a 2.5x gross debt-to-adjusted EBITDA ratio by 2026 and anticipates $1 billion in cost savings from its operational excellence program [2]. Future Outlook - For 2025, Hasbro expects a slight increase in total revenues on a constant currency basis, with adjusted operating margins projected between 21% and 22% [13]. - Adjusted EBITDA is anticipated to be in the range of $1.1 billion to $1.15 billion [13].

KEY TAKEAWAYSHasbro shares jumped after the toymaker posted better-than-expected results and unveiled a new strategy of raising revenue yearly through 2027.The company behind "Dungeons & Dragons" fantasy games and Transformers action figures posted a fourth-quarter revenue decline of 15% year-on-year to $1.10 billion.Hasbro shares are up more than 20% in the past 12 months. Hasbro (HAS) shares jumped more than 11% Thursday after the toymaker posted better-than-expected results and unveiled a new strategy of ...

The Hasbro, Inc. logo is seen on a toy for sale in a store in Manhattan, New York, U.S.Toy and gaming giant Hasbro took an optimistic tone Thursday on the potential impact of Chinese tariffs on its business, as executives said the company is shifting manufacturing away from China.Hasbro Chief Financial Officer Gina Goetter said on the company's fourth-quarter earnings call that the toymaker's 2025 guidance—which includes adjusted EBITDA of $1.1 billion to $1.15 billion, compared with $1.06 billion in 2024—r ...

For the quarter ended December 2024, Hasbro (HAS) reported revenue of $1.1 billion, down 14.5% over the same period last year. EPS came in at $0.46, compared to $0.38 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.03 billion, representing a surprise of +7.32%. The company delivered an EPS surprise of +21.05%, with the consensus EPS estimate being $0.38.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Hasbro, Inc. (NASDAQ:HAS) Q4 2024 Earnings Conference Call February 20, 2025 8:30 AM ET Company Participants Kern Kapoor - Senior Vice President-Investor Relations Chris Cocks - Chief Executive Officer Gina Goetter - Chief Financial Officer & Chief Operating Officer Conference Call Participants Megan Clapp - Morgan Stanley Christopher Horvers - JPMorgan Chase & Company Eric Handler - Roth MKM Fred Wightman - Wolfe Research Arpiné Kocharyan - UBS James Hardiman - Citi Jaime Katz - Morningstar Alex Perry - Ba ...

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]