Hasbro Q4 Bottom-Line Beats Street View; Expects Operating Cash Flow To Nearly Double In 2023

Hasbro Inc HAS reported a fourth-quarter FY22 sales decline of 17% year-on-year to $1.678 billion, marginally missing the consensus of $1.68 billion.
Segment Revenue: Consumer Products fell 26%, Wizards of the Coast and Digital Gaming increased 22%. Entertainment segment revenues declined 12%.
Selling, distribution, and administration costs grew 55.6%. The operating loss for the quarter was $(125.7) million compared to an operating profit of $171.5 million last year.
The company held $513.1 million in cash and equivalents as of Dec. 25, 2022.
Inventories at the end of Q4 increased to $676.8 million from $552.1 million last year.
Adjusted EPS of $1.31 beat the analyst consensus of $1.29.
Adjusted EBITDA for the quarter rose 7% to $327.2 million.
The company's next dividend of $0.70 per share will be payable on May 15, 2023, to shareholders of record on May 1, 2023.
"Our current cash position adequately supports our business needs in the short-term, and operating cash flow is expected to nearly double in 2023," said CFO Deborah Thomas.
Outlook: Hasbro sees FY23 adjusted EPS of $4.45 - $4.55 versus the consensus of $4.88.
It expects FY23 revenue to be down in low-single digits, with adjusted operating profit margin expansion of 50 – 70 basis points.
Price Action: HAS shares are trading higher by 3.05% at $60.16 on the last check Thursday.

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