Hasbro (NASDAQ:HAS) saw its stock price tumble more than 12% in premarket trading Tuesday after the company missed consensus estimates on top and bottom lines for FQ4.
The company generated fourth-quarter earnings per share (EPS) at $0.38, falling short of the projected $0.65 by analysts. The company's revenue for the quarter stood at $1.29 billion, also below the expected $1.35 billion.
Looking ahead to the full year of 2024, Hasbro has set its financial expectations as follows:
The Consumer Products Segment is projected to see a revenue decline between 7% and 12%, with 4 percentage points of this decrease attributed to the transition of certain businesses to an out-license model.
The operating margin for this segment is forecasted to be between 4% and 6%.
Revenue for the Wizards of the Coast Segment is expected to decrease by 3% to 5%, primarily due to comparisons with the second half's performance in licensed digital gaming.
The operating margin for this segment is anticipated to be between 38% and 40%.
Moreover, Hasbro has also revised its mid-term gross savings target upwards to $750 million by the end of 2025, an increase from the previously stated goal of between $350 million and $400 million.
"2023 was a productive year for Hasbro, although not without some challenges," said Gina Goetter, Hasbro’s CFO.
“As we navigated the current environment, we took aggressive steps to optimize our inventory, reset the cost structure, and sharpen our portfolio focus on play with the eOne film and TV divestiture.”
“Taken together, the actions throughout the full year have positioned the company for improved financial performance in 2024 and beyond. We are encouraged by our recent progress and remain laser focused on execution to deliver on our transformation objectives,” she added.