Hasbro Reports Mixed Q2 Results; Foreign Exchange Tampers Top Line Growth

Hasbro Inc HAS reported second-quarter FY22 sales growth of 1% year-on-year, to $1.34 billion, missing the consensus of $1.37 billion.
Segment Revenue: Consumer Products rose 7%, Wizards of the Coast and Digital Gaming increased 3%. Entertainment segment revenues declined 18%, driven by the sale of the music business at the beginning of the 3Q21.
Selling, distribution, and administration costs fell 7.6%. The operating margin expanded Y/Y from 5.8% to 16.4%, and operating income for the quarter rose 186% to $219.1 million.
The company held $628.2 million in cash and equivalents as of June 26, 2022.
Adjusted EPS of $1.15 beat the analyst consensus of $0.95.
Adjusted EBITDA for the quarter rose 6% to $308.3 million.
"Foreign exchange is impacting our top line revenue growth, but our teams are executing well to meet demand and drive profit," said CFO Deborah Thomas.
The company's next dividend of $0.70 per share will be payable on August 15, 2022, to shareholders of record on August 1, 2022.
Outlook: Hasbro plans for continued growth in 2022, including low-single-digit revenue growth on a constant currency basis.
It sees operating cash flow at the low end of $700 million - $800 million.
Price action: HAS shares are trading higher by 2.05% at $81.05 in premarket on the last check Tuesday.
Photo Via Company

Earnings Calendar