Hasbro Inc HAS shares are trading higher after the company reported a first-quarter FY24 sales decline of 24.4% year-on-year to $757.30 million, beating the consensus estimate of $738.61 million.
The revenue decline was driven primarily by the eOne film and television divestiture; excluding the divestiture, revenue declined by 9%.
Segment Revenue: Consumer Products declined 21%, Wizards of the Coast and Digital Gaming increased 7%. Entertainment segment revenues plunged 85%, impacted by the sale of eOne Film and TV in December 2023.
Selling, distribution, and administration costs fell 25.9%. The operating margin expanded Y/Y from 1.8% to 15.3%, and operating income for the quarter was $116.2 million compared to $17.9 million last year.
The company held $570.2 million in cash and equivalents as of March-end. The operating cash flow totaled $177.8 million.
Adjusted EBITDA for the quarter rose 75% to $172.8 million. Adjusted EPS of $0.61 beat the analyst consensus of $0.27.
“Performance from our licensing portfolio shows the strength of our brands and we continue to fuel innovation in games and toys as we expand our reach across play patterns to fans of all ages,” said CEO Chris Cocks.
The company’s next dividend will be payable on May 15, to shareholders of record at the close of business on May 1, 2024.
Outlook, maintained: Hasbro continues to expect FY24 Consumer Products Segment revenue to be down 7% to 12%.
The company sees FY24 adjusted EBITDA of $925 million – $1 billion. Hasbro targets gross savings of $750 million by 2025 end.
Price Action: HAS shares are trading higher by 7.98% at $62.78 in premarket at the last check Wednesday.
Photo via Wikimedia Commons
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