By Senad Karaahmetovic
Hasbro (NASDAQ:HAS) reported weaker-than-expected Q4 results while the full-year profit forecast also came in below expectations.
Hasbro reported EPS of $1.31 on revenue of $1.68 billion, below the average analyst estimate for earnings of $1.32 on sales of $1.73B. Revenue fell 17% year-over-year with the company's largest business unit - Franchise Brands - seeing its revenue fall by 5.2% to $729.5 million.
"As we announced previously, our fourth quarter and full-year 2022 results came in below our expectations," said Chris Cocks, Hasbro chief executive officer.
For 2023, Hasbro sees EPS at $4.50 (up or down 5 cents), missing the $4.88 consensus. Revenue is expected to be down low-single digits.
"For 2023, we have a focused plan to grow share in our key categories and further improve our margins," Cocks added.
Vital Knowledge analysts commented:
"The most incremental part of the Q4 report is the 2023 guidance and while EPS is light vs. the St, the numbers aren’t that bad considering the 1/26 warning and what Mattel said recently."
Stifel analysts also highlighted a weaker-than-expected outlook.
"Hasbro reported 4Q results that was consistent with preliminary results issued in late January and provided '23 outlook that was weaker, reflecting the inventory overhang entering '23," the analysts wrote in a note.