Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Hasbro Not Immune to Macroeconomic Pressures Says Analysts

Stock Markets Oct 05, 2022 13:20
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
HAS
-0.41%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

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.

Hasbro Not Immune to Macroeconomic Pressures Says Analysts
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email