2023-04-27 07:01:49 ET
Hasbro ( NASDAQ: HAS ) posted a mixed Q1 report as strength in table-top games was balanced by a continued toy inventory overhang.
The Pawtucket-based toy manufacturer notched just $0.01 in earnings per share against an $0.11 consensus estimate. Meanwhile, a 13.8% decline in revenue to $1B reflected a lighter contraction than was expected by analysts . CEO Chris Cocks highlighted strong performance for digital gaming and Magic: The Gathering in the quarter.
"We've made significant progress in implementing our Blueprint 2.0 strategy, including heightening our focus on high-growth, high-profit categories; improving our cost structure; and adding talented executives to our leadership team,” he said. “The sale process for the eOne TV and film assets is ongoing and we expect to provide an update during the second quarter..the global Hasbro team continues to execute our strategy to unlock the value of our rich IP library across our growth priorities including in gaming, direct-to-consumer and licensing.”
Moving forward, outgoing CFO Deborah Thomas stressed a focus on reducing inventory levels, a topic also touched upon by Mattel ( MAT ) in its earnings release on Wednesday evening. Margins are expected to rebound as inventory levels normalize.
“As we work through our inventory, we continue to invest in our growth priorities, reduce costs, and return cash to shareholders,” Thomas said. “The first quarter is the smallest quarter of the year, and there is a lot of the year ahead of us. The team is advancing our cost savings and taking strategic steps to drive long-term shareholder value.”
Management expects Revenue down low-single digits against the consensus expectation of a 2.67% contraction. Adjusted earnings per diluted share in the range of $4.45 to $4.55 are anticipated for the full year, above the consensus of $4.39. Adjusted EBITDA for the full year is expected to be approximately flat with 2022 Adjusted EBITDA.
Shares of Hasbro ( HAS ) edged 1.8% higher in premarket trading after the print .
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Hasbro offers upbeat guide despite persistent inventory issues