HAS - Hasbro slips after lowering outlook ahead of holiday quarter

2023-10-26 11:43:03 ET

Investors dumped Hasbro ( NASDAQ: HAS ) shares after the toymaker missed Wall Street estimates for third-quarter results and lowered its sales outlook indicating a weak holiday session.

The stock fell over 10% in morning trade on Thursday, erasing nearly $80 million from its market valuation of $7.60 billion, till last close.

With rising prices, consumer stopped spending on discretionary items including toys and allocated their budget on essential house-hold products.

According to a recent Seeking Alpha analysis , Hasbro’s “consumer product segment needs a second-half rebound in demand to meet FY23 projections, but there has been no improvement in point-of-sale trends so far.”

Earlier this week, Barbie-maker Mattel ( MAT ) slipped after the company logged an eight consecutive quarter of decline in gross billings for its American Girl segment.

Hasbro said it expects fiscal 2023 revenue to decline 13% to 15% driven by softer toy outlook in Consumer Products. Its prior expectation was a fall of 3% to 6%.

“The impact of the broader toy category declines has had a change in our consumer products and total Hasbro outlook,” the company said.

Seeking alpha analysts and Seeking Alpha’s quant ratings are conservative on the stock and rated it a “Hold”, while Wall Street analysts consider it a “Buy”. Hasbro fell more than 20% so far this year.

More on Hasbro

• Hasbro: I'm Skeptical It Can Meet Its FY23 Guidance
• Hasbro Valuation Has Failed Its Saving Throw
• Hasbro Non-GAAP EPS of $1.64 misses by $0.05, revenue of $1.5B misses by $130M

For further details see: