Hasbro Q4 Earnings Surpass Estimates, Revenues Decline Y/Y

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].