Hasbro Sees Flat CC Revenue In Q4; Backs FY22 View - Update

(RTTNews) - While reporting weak profit and revenues for its third quarter, Hasbro, Inc. (HAS) on Tuesday said it sees fourth-quarter revenue to be around flat on a constant currency basis.

Further, the company reiterated its fiscal 2022 guidance of flat to slightly down revenue in constant currency.

The company still expects a 50-basis point expansion of adjusted operating margin to 16 percent.

Chris Cocks, Hasbro chief executive officer, said, "To achieve our full-year outlook, we are projecting Hasbro's fourth quarter revenue to be approximately flat versus last year on a constant currency basis with particular strength from our Wizards and Digital Gaming segment. …. Hasbro is well positioned for growth in 2023 and beyond as we execute our new strategic plan focused on bigger brands, stronger profits and consumer-focused leadership."

In the third quarter, net earnings came in at $129.2 million or $0.93 per share, down from $253.2 million or $1.83 per share last year.

Adjusted net earnings were $196.2 million or $1.42 per share for the period, compared to $271.2 million or $1.96 per share a year ago.

Analysts on average had expected the company to earn $1.52 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter fell 14.7 percent to $1.68 billion from $1.97 billion last year. The decline was 12 percent on a constant currency basis.

Analysts expected revenues of $1.68 billion for the quarter.

The company said the third quarter was its most difficult comparison and was further impacted by increasing price sensitivity for the average consumer.