Hasbro to Release Fourth-Quarter Results
Hasbro, the popular toymaker, is gearing up to release its fourth-quarter results on Tuesday. Analysts are anticipating a profit of $60 million, a significant improvement from the loss of $128.9 million reported in the same quarter last year.
According to a consensus among 10 analysts, Hasbro’s revenue is expected to decline by 20%, amounting to $1.358 billion. The company had previously projected a 13% to 15% increase in toy sales for the full year. Excluding one-time items and charges, analysts predict that Hasbro will post a profit of 66 cents.
During the quarter, Hasbro experienced a 21% decrease in its shares, which closed at $50.59 on Friday. In December, the company issued a warning, anticipating continued challenges in the toy industry, which were expected to persist into 2024. Rival company Mattel also projected flat sales in constant currency for this year due to consumer pullback and a reduced number of film releases.
As Hasbro releases its results, analysts will be closely watching for insights into the duration of these challenges and the overall state of the toy industry. Additionally, there is optimism among some analysts that the recent layoff of approximately 1,100 employees, constituting nearly 20% of their workforce, may improve the company’s margins.
In 2023, Hasbro and the toy industry faced difficulties due to excessive inventories following the holiday season. To address this, Hasbro aims to end this year with cleaner stock, enabling them to replenish their inventory with new and exciting toys. Analysts will be keen to see how this strategy impacts their performance in the new year.
Overall, the release of Hasbro’s fourth-quarter results will provide vital insights into the company’s financial position and its expectations for the future, shedding light on the broader health of the toy industry.
Analyst comment
Neutral news. Hasbro’s profit is expected to improve significantly but revenue is anticipated to decline by 20%. Analysts will be closely watching for insights into the challenges in the toy industry and the impact of recent layoffs. The company’s strategy to address excessive inventories will also be a key factor for their performance in the new year. Overall, the results will provide vital insights into the company’s financial position and the broader health of the toy industry.
