Home » Hasbro (HAS) reports Q3 earnings

Hasbro (HAS) reports Q3 earnings

by TopBusinessView

A worker arranges boxes of Hasbro board games on a shelf at a Target Corp. location in Emeryville, California.

David Paul Morris | Bloomberg | Getty Images

Hasbro reported earnings Tuesday morning that fell below analysts’ expectations as inflation weighed on consumers.

Here’s how the toymaker performed compared with Wall Street estimates, according to Refinitiv:

  • Earnings per share: $1.42 vs. $1.52 expected.
  • Revenue: $1.68 billion vs. $1.68 billion expected.

The toy maker faced tough comparisons in the third quarter, but surging prices added to the pressure. “As expected, the third quarter is our most difficult comparison and was further impacted by increasing price sensitivity for the average consumer,” CEO Chris Cocks said in an earnings release.

Revenue fell 15% compared to the period last year, led by a 35% decrease in entertainment revenue. This was attributed to multiple film releases in the third quarter of 2021 that did not have equivalent projects this year.

For the fourth quarter, which includes Christmas, the company expects flat results versus last year, buoyed by the “Magic: The Gathering” brand in its Wizards of the Coast unit. “Magic: The Gathering” is a digital and trading card game that has grown into the company’s first $1 billion brand. The 30th anniversary of the game occurs in the fourth quarter of this fiscal year. The Wizards segment, which also includes “Dungeons & Dragons,” saw revenues decline 16% in the third quarter.

The company also pointed to several upcoming releases, including Marvel’s “Black Panther: Wakanda Forever” and the company’s own “Transformers: EarthSpark,” which the company will produce merchandise for during the fourth quarter and beyond.

As prices for goods and supplies surge, the toy and game giant has increased prices for products like Nerf Blasters and My Little Pony figures this year.

Cocks told “Closing Bell” in early October that the toy market remains resilient even through bad times.

In the previous quarter, Hasbro reported relatively strong growth compared to the rest of the gaming market, atop new releases including an expansion of the popular trading card game “Magic: The Gathering.” It’s “Wizards of the Coast” business, which controls “Dungeons & Dragons” also saw significant profit growth in that quarter.

Shares of rival Mattel have fallen significantly since September—alongside the broader market—despite positive news this year, including the upcoming Barbie movie and a toy agreement with SpaceX.

Read the earnings release here.

This is breaking news. Check back for updates.

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