Hasbro Slips After Swing to Profit, Miss on Revenue

Hasbro shares ease on Tuesday after the toymaker swings to a first-quarter profit but misses revenue forecasts.
Author:
Publish date:

Hasbro  (HAS) - Get Report delivered a mixed bag Tuesday after the iconic toymaker posted a first-quarter profit while coming up short of Wall Street's revenue expectations.

Shares of the Pawtucket, R.I., company at last check were off 1%.

Tesla, AMD, Google, General Electric - 5 Things You Must Know Tuesday

Hasbro reported net income of $116.2 million, or 84 cents a share, compared with a net loss of $69.7 million, or 51 cents a share, in the year-earlier quarter. The latest adjusted earnings came to $1 a share, beating the FactSet analyst consensus of 64 cents.

Revenue totaled $1.11 billion, up 0.8% from a year earlier, while the FactSet consensus called for revenue to reach $1.17 billion.

Revenue grew 14% in the consumer products segment and 15% in the Wizards of the Coast and digital gaming segment, the company said.

Entertainment segment revenue declined due to what Hasbro called "expected declines in theatrical and timing of deliveries planned for later in the year." Revenue in television and theater fell 34%. 

The theatrical business continues to feel the impact of COVID-19-related theater shutdowns, the company said. A year earlier, theaters were open for most of the quarter. 

Scripted TV deliveries are scheduled to increase later in the current year, Hasbro said, "and we are targeting returning to 2019 levels of revenue for the full-year 2021 in the TV and film business."

"We continue to target full-year double-digit revenue growth for Hasbro supported by innovation and quality execution throughout the business," Chairman and Chief Executive Brian Goldner said in a statement. 

Last week, Berenberg analyst David Beckel said Hasbro and its toymaking peer Mattel  (MAT) - Get Report have both "come through the pandemic stronger than they entered."

Earlier this month, Hasbro and videogame platform Roblox  (RBLX) - Get Report announced a venture that will create new nerf and Monopoly game products based on the Roblox platform.

In February, Hasbro gave its popular potato-shaped toy, Mr. Potato Head, a brand makeover by renaming the spud simply "Potato Head" and dropping the "Mr." title.