Shares of Hasbro Inc.
HAS,
sank 8.7% toward a seven-month low in premarket trading Thursday, after the toy maker missed third-quarter profit and revenue expectations and slashed its full-year outlook, citing a “softer toy outlook” in consumer products. The company swung to a net loss of $171.1 million, or $1.23 a share, from net income of $129.2 million, or 93 cents a share, in the year-ago period. Excluding nonrecurring items, such as losses on assets held for sale, adjusted earnings per share rose to $1.64 from $1.42, but missed the FactSet consensus of $1.72. Revenue fell 10.3% to $1.50 billion, below the FactSet consensus of $1.62 billion, as consumer products sales dropped 17.6% to $956.9 million to miss expectations of about $1.1 billion. For 2023, the company now expects revenue to decline 13% to 15% from last year, compared with previous guidance of a 3%-to-6% decline. Hasbro’s disappointing results follows an earnings miss by rival Mattel Inc.
MAT,
after Wednesday’s close. Hasbro’s stock has slumped 14.5% over the past three months through Wednesday, while Mattel shares have lost 5.7% and the S&P 500
SPX,
has given up 8.3%.
