Hasbro Not Immune to Macroeconomic Pressures Says Analysts

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By Sam Boughedda

Hasbro (NASDAQ:HAS) shares are down over 2% Wednesday, a day after the company hosted its Investor Day, where it reportedly introduced its "Brand Blueprint 2.0."

In a note to clients following the event, BofA analysts said, "toys aren't immune to macroeconomic pressures."

"Hasbro cut its 2022 ex. FX revenue guidance from up low single digits to flat to slightly down. Including the headwind from FX, Hasbro expects 2022 revenue down 4-5%. Revenue in 3Q is now expected to be down 15% (down 12% ex. FX) with operating profit down more. This is materially worse than the Street had modeled (3QE revenue -3.5%)," wrote the analysts.

They added that Hasbro had warned on its second-quarter call that the third quarter had challenging compares, and "revenue was pulled forward into 2Q as retailers ordered early, but these results are worse than expected."

BofA cut its price target on the stock to $83 from $91, reiterating a Buy rating.

Elsewhere, Goldman Sachs reiterated a Buy rating and a $101 price target on Hasbro. Analysts there told investors its "Brand Blueprint 2.0" refocuses the company on gaming, digital, and direct-to consumer and "provided new 2027 financial targets including MSD revenue CAGR to $8.5 bn and 20% EBIT margins, implying $1.7 bn of EBIT."

"HAS negatively preannounced 3Q22 including a revenue decline of -15% yoy (v. FactSet consensus: -4% yoy) and -12% yoy constant currency and for EBIT margin declines. HAS lowered its 2022 full-year revenue outlook to flat to down slightly in constant currency (v. +LSD prior) & down 4-5% reported but reiterated its EBIT margin outlook for 16%," added the analysts.