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Hasbro (HAS) Down on Lay Off News & Dismal Preliminary Results
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Hasbro, Inc. (HAS - Free Report) witnessed a 6.7% decline of its shares in after-hour trading session on Jan 26, following an announcement to lay off nearly 15% of its global workforce this year. Investors’ sentiment was also affected by dismal preliminary fourth-quarter 2022 results.
Per the company, the lay off will occur over the next several weeks. HAS aims to reach its goal of $250-$300M in annual run-rate cost savings by 2025 end thanks to lay off and continuing systems as well as supply-chain investments. These efforts will increase profitability and reinvestment in core brand growth.
Chris Cocks, chief executive officer of Hasbro said, “We are focused on implementing transformational changes aimed at substantially reducing costs and increasing our growth rates and profitability. While the full-year 2022, and particularly the fourth quarter, represented a challenging moment for Hasbro, we are confident in our Blueprint 2.0 strategy, unveiled in October, which includes a focus on fewer, bigger brands; gaming; digital; and our rapidly growing direct to consumer and licensing businesses.”
Shares of the company have lost 18.9% in the past six months compared with the industry’s decrease of 6.6%.
Q4 2022 Preliminary Results
HAS’ fourth-quarter 2022 preliminary revenues came in at nearly $1.68 billion, down 17% year over year. On a constant-currency basis, revenues declined 14% year over year.
Consumer Products’ and Entertainment’s revenues came in at $1 billion and $335 million, down 26% and 12% year over year, respectively. However, revenues of Wizards of the Coast and Digital Gaming increased 22% year over year to $339 million.
Hasbro’s preliminary fourth-quarter 2022 results show operating loss margin of 7.5-8.3%. It expects adjusted operating profit margin of 15.8-16.0%. HAS’ adjusted earnings per share is expected to be in the range of $1.29-$1.31.
Image Source: Zacks Investment Research
2022 Preliminary Results
The company’s 2022 preliminary revenues came in at nearly $5.86 billion, down 9% year over year. On a constant-currency basis, revenues declined 6% year over year.
Consumer Products’ and Entertainment’s revenues came in at $3.57 billion and $959 million, down 10% and 17% year over year, respectively. However, revenues of Wizards of the Coast and Digital Gaming increased 3% year over year to $1.33 billion.
The company’s preliminary 2022 results show operating profit margin of 6.7-7%. It expects adjusted operating profit margin of 15.7-15.8%. HAS’ adjusted earnings per share is expected to be in the range of $4.43-$4.45.
The company currently has a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the Zacks Consumer Discretionary sector are World Wrestling Entertainment, Inc. , OneSpaWorld Holdings Limited. (OSW - Free Report) and Manchester United plc (MANU - Free Report) .
World Wrestling Entertainment currently sports a Zacks Rank #1 (Strong Buy). WWE has a trailing four-quarter earnings surprise of 25.2%, on average. The stock has increased 76.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WWE’s 2023 sales and earnings per share (EPS) indicates a rise of 4.9% and 10.7%, respectively, from the year-ago period’s estimated levels.
OneSpaWorld presently sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 84.1%, on average. Shares of OSW have increased 5.4% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 24.2% and 91%, respectively, from the year-ago period’s estimated levels.
Manchester carries a Zacks Rank #2, at present. MANU has a trailing four-quarter earnings surprise of 34.4%, on average. Shares of MANU have gained 67.2% in the past year.
The Zacks Consensus Estimate for MANU’s 2024 sales and EPS indicates a rise of 11.4% and 27.8%, respectively, from the 2023 estimated levels.
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Hasbro (HAS) Down on Lay Off News & Dismal Preliminary Results
Hasbro, Inc. (HAS - Free Report) witnessed a 6.7% decline of its shares in after-hour trading session on Jan 26, following an announcement to lay off nearly 15% of its global workforce this year. Investors’ sentiment was also affected by dismal preliminary fourth-quarter 2022 results.
Per the company, the lay off will occur over the next several weeks. HAS aims to reach its goal of $250-$300M in annual run-rate cost savings by 2025 end thanks to lay off and continuing systems as well as supply-chain investments. These efforts will increase profitability and reinvestment in core brand growth.
Chris Cocks, chief executive officer of Hasbro said, “We are focused on implementing transformational changes aimed at substantially reducing costs and increasing our growth rates and profitability. While the full-year 2022, and particularly the fourth quarter, represented a challenging moment for Hasbro, we are confident in our Blueprint 2.0 strategy, unveiled in October, which includes a focus on fewer, bigger brands; gaming; digital; and our rapidly growing direct to consumer and licensing businesses.”
Shares of the company have lost 18.9% in the past six months compared with the industry’s decrease of 6.6%.
Q4 2022 Preliminary Results
HAS’ fourth-quarter 2022 preliminary revenues came in at nearly $1.68 billion, down 17% year over year. On a constant-currency basis, revenues declined 14% year over year.
Consumer Products’ and Entertainment’s revenues came in at $1 billion and $335 million, down 26% and 12% year over year, respectively. However, revenues of Wizards of the Coast and Digital Gaming increased 22% year over year to $339 million.
Hasbro’s preliminary fourth-quarter 2022 results show operating loss margin of 7.5-8.3%. It expects adjusted operating profit margin of 15.8-16.0%. HAS’ adjusted earnings per share is expected to be in the range of $1.29-$1.31.
Image Source: Zacks Investment Research
2022 Preliminary Results
The company’s 2022 preliminary revenues came in at nearly $5.86 billion, down 9% year over year. On a constant-currency basis, revenues declined 6% year over year.
Consumer Products’ and Entertainment’s revenues came in at $3.57 billion and $959 million, down 10% and 17% year over year, respectively. However, revenues of Wizards of the Coast and Digital Gaming increased 3% year over year to $1.33 billion.
The company’s preliminary 2022 results show operating profit margin of 6.7-7%. It expects adjusted operating profit margin of 15.7-15.8%. HAS’ adjusted earnings per share is expected to be in the range of $4.43-$4.45.
The company currently has a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the Zacks Consumer Discretionary sector are World Wrestling Entertainment, Inc. , OneSpaWorld Holdings Limited. (OSW - Free Report) and Manchester United plc (MANU - Free Report) .
World Wrestling Entertainment currently sports a Zacks Rank #1 (Strong Buy). WWE has a trailing four-quarter earnings surprise of 25.2%, on average. The stock has increased 76.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WWE’s 2023 sales and earnings per share (EPS) indicates a rise of 4.9% and 10.7%, respectively, from the year-ago period’s estimated levels.
OneSpaWorld presently sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 84.1%, on average. Shares of OSW have increased 5.4% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 24.2% and 91%, respectively, from the year-ago period’s estimated levels.
Manchester carries a Zacks Rank #2, at present. MANU has a trailing four-quarter earnings surprise of 34.4%, on average. Shares of MANU have gained 67.2% in the past year.
The Zacks Consensus Estimate for MANU’s 2024 sales and EPS indicates a rise of 11.4% and 27.8%, respectively, from the 2023 estimated levels.