Hasbro stock (NASDAQ:HAS) has reached a 52-week low of $63.44, representing a 35% year-on-year decline. The Company missed its profitability forecasts for Q3 2022, mainly owing to overstocking its merchants in Q2 2022 to prevent future post-pandemic supply chain issues. It’s Magic:
The Gathering card game sets and content releases have been pushed out to the fourth quarter as the game celebrates its 30th anniversary this holiday season. Hasbro has been diversifying its iconic IP portfolio, which includes G.I. Joe, Monopoly, My Little Pony, Nerf, Play-Doh, Power Rangers, and Transformers, into new forms of entertainment such as video games, digital content, and live-action films.
Content for Entertainment
Even though their 2021 live-action G.I. Joe film Snake Eyes underperformed, they will proceed with an Amazon (NASDAQ:AMZN) Prime live-action TV series focused on Lady Jaye of G.I. Joe. It is attempting to create its own live-action “universe” in the manner of the Marvel Cinematic Universe (MCU) (NYSE: DIS) and the DC Extended Universe (DCEU) (NYSE: WBD). It also licenses MCU IPs for action figures and toys, with a major launch of the forthcoming Black Panther: Wakanda Forever live-action feature set for November 2022. In addition, the Company is working on the next iteration of its legendary Dungeons & Dragons series, which has followers ranging from baby boomers to gen-Z’ers.
Hasbro Stock: Earnings fall short
Hasbro reported its third-quarter fiscal 2022 earnings for September 2022 on October 18, 2022. The Company announced an adjusted EPS profit of $1.42, excluding non-recurring items vs. average analyst projections of $1.60, a (-$0.18) miss. Revenues dropped (-15%) year on year (YoY) to $1.68 billion, meeting expert expectations. Revenues for the full year 2022 are expected to be flat to slightly lower in constant currency, compared to the current projection of (-3.7%). Excluding non-GAAP expenses, adjusted profit margins are estimated to be 16.7%. The Company had $552 million in cash at the end of the quarter. The poor results were mostly the result of a faster rush of Hasbro stock (NASDAQ:HAS) to retailers in Q2 in anticipation of supply chain difficulties, and its Magic: The Gathering set releases are expected for the fourth quarter as opposed to the third, as was the case last year.
CEO and CFO Remarks
Chris Cocks, CEO of Hasbro, said, “As predicted, the third quarter was our most challenging comparison, which was exacerbated by rising price sensitivity among consumers. To meet our full-year forecast, we expect Hasbro’s fourth-quarter sales to be about unchanged with last year on a constant currency basis, with notable strength from its Wizards and Digital Gaming segments. Growth will be driven by what we anticipate to be one of the most significant fourth quarters for MAGIC: THE GATHERING as we celebrate the brand’s 30th anniversary and Hasbro’s first $1 billion brand.”
Featured Image – Megapixl © Mohammedsoliman4
Author Okoro Chinedu 
