Why Monopoly Game Owner Hasbro's Shares Are Taking A Hit Today

Hasbro Inc HAS reported a third-quarter FY23 sales decline of 10% year-on-year to $1.503 billion, missing the analyst consensus estimate of $1.644 billion.

Segment Revenue: Consumer Products fell 18%, Wizards of the Coast and Digital Gaming increased 40%. Entertainment segment revenues plunged 42%.

Selling, distribution, and administration costs fell 3.7%. The company incurred an operating loss of $(169.5) million versus an operating income of $194.3 million a year earlier.

Adjusted EPS of $1.64 missed the analyst consensus estimate of $1.70.

Adjusted EBITDA for the quarter increased 16% to $401.5 million.

Hasbro held cash and equivalents of $185.5 million as of October 1, 2023. Operating cash flow for nine months totaled $334.9 million.

The company reduced owned inventory by 27%, including a 34% decline in Consumer Products inventory.

The company's next dividend of $0.70 per share will be payable on November 15, 2023, to shareholders of record on November 1, 2023.

Outlook: Hasbro sees FY23 revenue to decline 13%-15% (prior view: down 3% - 6%), driven by a softer toy outlook in Consumer Products.

Hasbro now expects adjusted operating margin of 13% - 13.5% and adjusted EBITDA of $900 million - $950 million.

Hasbro currently expects FY23 operating cash flow of $500 million - $600 million.

Price Action: HAS shares are trading lower by 11% at $48.52 in on the last check Thursday.