Hasbro Was Not Toying Around With Q4 Earnings

Companies and Brands

Published: February 11, 2020 10:50 am

When Hasbro Inc. (NASDAQ: HAS) reported its fourth-quarter financial results before the markets opened on Monday, the toymaker said that it had $1.33 in earnings per share (EPS) and $1.43 billion in revenue. The consensus estimates had called for $0.91 in EPS and $1.44 billion in revenue, and the same period of last year reportedly had EPS of $1.33 on $1.39 billion in revenue.

Note that while Hasbro completed its acquisition of eOne in the first quarter, the impact was not reflected in the report.

Fourth-quarter revenue was bolstered by strong demand for Hasbro’s products for Disney’s “Frozen 2” and Star Wars.

In terms of its segments, the company reported as follows:

Franchise Brands net revenues shrank 9% year over year to $661.9 million.
Partner Brands net revenues increased by 50% to $408.5 million.
Hasbro Gaming net revenues decreased 8% to $246.5 million.
Emerging Brands net revenues fell 7% to $111.1 million.

The company did not offer any outlook in the report. However, consensus estimates are calling for $0.30 in EPS and $1.09 billion in revenue for the first quarter.

Brian Goldner, Hasbro’s board chair and chief executive, commented:

The global Hasbro team delivered a good year and achieved key objectives we set for 2019. We profitably grew revenues across regions absent foreign exchange supported by the successful execution of our channel strategy; we delivered growth in MAGIC: THE GATHERING driven by the successful launch of Arena and we executed at a high level during the holiday season. Our acquisition of Entertainment One accelerates our Brand Blueprint strategy and significantly expands our expertise and capabilities as a global play and entertainment company. Our teams are actively engaged to unlock value across our organization – in gaming, in toys, in consumer products and in entertainment.

After spiking nearly 8% just after the opening bell, Hasbro stock was last seen up about 1% at $101.98, with a consensus price target of $116.27 and a 52-week trading range of $82.87 to $126.87.