Core Insights - Basic Fun! has entered a worldwide licensing agreement with Hasbro to manufacture and distribute products under the STRETCH ARMSTRONG brand, which has been iconic for nearly 50 years [1][4] - The new STRETCH ARMSTRONG toys will feature super-stretchy figures with a unique "Power Plasma" filling, allowing them to stretch up to five times their size and return to their original form [3][5] - The first STRETCH ARMSTRONG toys are expected to be available at retailers globally starting in fall 2025 [2][3] Company Overview - Basic Fun! is a global designer and marketer of toys and consumer products, with a presence in over 60 countries and partnerships with more than 2,500 retailers [6] - The company aims to create memorable experiences through imaginative play and has a diverse portfolio of iconic brands [6] - Hasbro, with over 100 years of experience, focuses on creating joy and community through play, offering a wide range of products including toys, games, and licensed consumer products [7][8]

Group 1 - The Value Lab focuses on long-only value investment ideas, aiming for a portfolio yield of about 4% and has performed well over the last five years by engaging in international markets [1][2] - Hasbro (NASDAQ: HAS) was previously on the radar for investment but has recently disappointed due to missed opportunities after hitting local lows around Christmas [2] - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are downside limited and expected to generate non-correlated and outsized returns in the current economic environment [3]

Core Insights - Hasbro is implementing a new strategy called "Playing to Win" to return to growth, focusing on video games, services, and eCommerce as key components [1][2] - The company reported a 17% decline in full-year 2024 revenue, primarily due to the divestiture of its eOne film and television business, with a 7% decline when excluding this impact [2] Strategy Overview - The "Playing to Win" strategy consists of five pillars: digital and direct initiatives, focusing on profitable play-focused brands, increasing collectible appeal for consumers aged 13 and above, reaching emerging markets, and expanding retail and licensing partnerships [3] - Hasbro aims to increase its reach from 500 million to 750 million kids, families, and fans by 2027, while pursuing transformational initiatives such as modernizing systems and optimizing the supply chain [4] Financial Projections - The company projects modest revenue growth in 2025, with continued margin expansion, and anticipates a mid-single digit revenue CAGR through 2027, driven by new toy innovations and digital investments [5]

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 ...

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]