Hasbro Posts Q3 Earnings Below Street View, Bitten By Inflation

Hasbro Inc HAS reported a third-quarter FY22 sales decline of 15% year-on-year to $1.68 billion, missing the consensus of $1.72 billion.
Segment Revenue: Consumer Products fell 10%, Wizards of the Coast and Digital Gaming decreased 16%. Entertainment segment revenues declined 35%.
Selling, distribution, and administration costs fell 1.1%. The operating margin contracted Y/Y from 18.7% to 11.6%, and operating income for the quarter decreased 47% to $194.3 million.
The company held $551.6 million in cash and equivalents as of September 25, 2022. Cash provided by operating activities for nine months amounted to $262.2 million.
Inventories at the end of Q3 rose 55% Y/Y to $844.5 million.
Adjusted EPS of $1.42 missed the analyst consensus of $1.65.
Adjusted EBITDA for the quarter fell 25% to $345.5 million.
"As expected, the third quarter is our most difficult comparison and was further impacted by increasing price sensitivity for the average consumer," said CEO Chris Cocks.
The company's next dividend of $0.70 per share will be payable on November 15, 2022, to shareholders of record on November 1, 2022.
Outlook: Hasbro sees FY22 revenue to be flat - slightly down in constant currency.
It sees 16% adjusted operating profit margin, excluding Operational Excellence charge and other non-GAAP items.
Price Action: HAS shares are trading lower by 4.00% at $65.00 in premarket on the last check Tuesday.
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