Hasbro, the renowned toy maker recognized for iconic brands like Monopoly, Transformers, and G.I. Joe, encountered a challenging day. In the fourth quarter, the company reported adjusted earnings of 38 cents per share, generating revenue of $1.29 billion. This fell short of analysts' expectations of 65 cents per share and revenue surpassing $1.5 billion, as per FactSet's survey. Moreover, on an unadjusted basis, Hasbro incurred a net loss of $7.64 per share, defying analysts' projections of a profit of 59 cents per share.
As a consequence, shares in Hasbro plummeted by 12% during premarket trading on Tuesday, signifying a substantial setback for the company.
Compounding the overall disappointment, Hasbro's outlook for the future appeared discouraging. The company anticipates its adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) for fiscal year 2024 to range from $925 million to $1 billion. This forecast falls below analysts' predictions of a $1.05 billion profit.
Although Hasbro faces current challenges, their esteemed reputation and creative portfolio suggest they may have the capability to navigate their way back to success.
