Hasbro Q4 Earnings: Beats Estimates, Slash Costs, Targets 750M Gamers & Fans By 2027

Shares of Hasbro Inc. HAS are trading higher in premarket on Thursday.

The company reported a fourth-quarter revenue decline of 15% year-on-year to $1.102 billion, beating the analyst consensus estimate of $1.027 billion.

Segment Revenue: Consumer Products declined 1%, Wizards of the Coast and Digital Gaming decreased 7%. Entertainment segment revenues plunged 91%.

Selling, distribution, and administration costs fell 16.2%. The operating margin expanded Y/Y from (93)% to 5.4%, and operating income for the quarter was $59.8 million compared to a $1.19 billion loss last year.

Adjusted EBITDA for the quarter jumped to $164.8 million versus $10.6 million last year. Adjusted EPS of 46 cents beat the consensus estimate of 34 cents.

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The company held $695 million in cash and equivalents as of December end. The operating cash flow for twelve months totaled $847.4 million. Hasbro owned inventory was down 17.4% versus prior year.

“I’m proud of our team for delivering what we promised in 2024: we grew in games and licensing, stepped up our operational efficiency, and vastly improved the performance of our toy business,” said CEO Chris Cocks.

“In 2025, we’re excited to bring a stellar lineup of toys and games to fans, expanding the reach of our IP through outstanding partnerships while we continue to focus on operational rigor and anticipating the future of play.”

The company’s quarterly cash dividend of $0.70 per common share, payable on March 12, to shareholders of record at the close of business on March 3.

Outlook: Hasbro sees FY25 revenue up slightly in constant currency. The company expects FY25 adjusted EBITDA of $1.1 billion – $1.15 billion and an adjusted operating margin of 21% – 22%.

New Strategy: Today, Hasbro also unveiled a new strategic plan, ‘Playing to Win,’ taking the company through 2027. 

Through play-fueled engagement and partner-scaled co-investment, Hasbro plans to seek to expand its reach from over 500 million kids, families, and fans today to over 750 million by 2027.

Through 2027, the company expects an average of mid-single digit revenue growth and 50-100 basis points of annual operating profit margin improvement.

By 2027, Hasbro expects its operational excellence program to deliver $1 billion of gross cost savings, with approximately half dropping to the bottom line.

Price Action: HAS shares are trading higher by 4.31% at $63.77 in premarket at the last check Thursday.

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