Subscribe for full access to The Hollywood Reporter
Subscribe for full access to The Hollywood Reporter
The toy maker missed Wall Street analyst expectations on earnings as film and TV revenue fell 26 percent.
By Etan Vlessing
Canada Bureau Chief
Entertainment One owner Hasbro has stumbled with its third-quarter earnings.
Hasbro saw net earnings fall 49 percent to $129.2 million, against a year-earlier $253.2 million, and the adjusted earnings per share line came in at $1.42, compared to $1.96 in the same period of fiscal 2021.
That fell short of a $1.52 expected per-share earnings estimate from Refinitiv. Hasbro matched Wall Street projections for overall third-quarter revenues at $1.68 billion.
The entertainment segment at Hasbro, which includes eOne, saw revenues fall 34 percent to $211.6 million, compared to a year-earlier $327.1 million. Film and TV revenue slid 26 percent to $188.6 million as Hasbro pointed to unfavorable comparisons to year-earlier streaming releases of the films Come From Away and Finch.
Related Stories
The latest financial results come amid a focus by Hasbro on fewer, bigger brands and accelerated profitability as the toy maker drives toward becoming a digital gaming powerhouse. The latest results were also impacted by inflationary pressures on consumer spending, according to CEO Chris Cocks.
“As expected, the third quarter is our most difficult comparison and was further impacted by increasing price sensitivity for the average consumer,” Cocks said in a statement that accompanied the earnings release, adding, “Hasbro is well positioned for growth in 2023 and beyond as we execute our new strategic plan focused on bigger brands, stronger profits and consumer-focused leadership.”
As Hasbro looks to upcoming movie releases on which it aims at merchandising gains, including Marvel Studios’ Black Panther: Wakanda Forever and Transformers: EarthSpark, MKM Partners analyst Eric Handler was optimistic about the toy maker’s overall focus on digital gaming and has a “buy” rating on the firm at $90 a share. Since the first day of trading this year, Hasbro stock has fallen about 36 percent, to $65.67 a share as of trading on Oct. 18.
“We remain believers in Hasbro’s Blueprint 2.0 strategy and are much more focused on the company’s strong, brand-driven lineup in 2023 and management’s renewed focus on bottom-line growth,” Handler said in an Oct. 18 investment note.
Sign up for THR news straight to your inbox every day
Sign up for THR news straight to your inbox every day
Subscribe for full access to The Hollywood Reporter
Send us a tip using our anonymous form.