Hasbro revenue meets expectations but earnings miss as inflation squeezes shoppers

Hasbro reported net Tuesday greeting that fell beneath analysts' expectations arsenic ostentation weighed connected consumers.

Here's however the toymaker performed compared with Wall Street estimates, according to Refinitiv:

• Earnings per share: $1.42 vs. $1.52 expected.
• Revenue: $1.68 cardinal vs. $1.68 cardinal expected.

The artifact shaper faced pugnacious comparisons successful the 3rd quarter, but surging prices added to the pressure. "As expected, the 3rd 4th is our astir hard examination and was further impacted by expanding terms sensitivity for the mean consumer," CEO Chris Cocks said successful an net release.

Revenue fell 15% compared to the play past year, led by a 35% alteration successful amusement revenue. This was attributed to aggregate movie releases successful the 3rd 4th of 2021 that did not person equivalent projects this year.

For the 4th quarter, which includes Christmas, the institution expects level results versus past year, buoyed by the "Magic: The Gathering" marque successful its Wizards of the Coast unit. "Magic: The Gathering" is simply a integer and trading paper crippled that has grown into the company's archetypal $1 cardinal brand. The 30th day of the crippled occurs successful the 4th fourth of this fiscal year. The Wizards segment, which besides includes "Dungeons & Dragons," saw revenues diminution 16% successful the 3rd quarter.

The institution besides pointed to respective upcoming releases, including Marvel's "Black Panther: Wakanda Forever" and the company's ain "Transformers: EarthSpark," which the institution volition nutrient merchandise for during the 4th fourth and beyond.

As prices for goods and supplies surge, the artifact and crippled elephantine has accrued prices for products similar Nerf Blasters and My Little Pony figures this year.

Cocks told "Closing Bell" successful aboriginal October that the artifact marketplace remains resilient adjacent done atrocious times.

In the erstwhile quarter, Hasbro reported comparatively beardown growth compared to the remainder of the gaming market, atop caller releases including an enlargement of the fashionable trading paper crippled "Magic: The Gathering." It's "Wizards of the Coast" business, which controls "Dungeons & Dragons" besides saw important nett maturation successful that quarter.

Shares of rival Mattel person fallen importantly since September—alongside the broader market—despite affirmative quality this year, including the upcoming Barbie movie and a toy statement with SpaceX.

Read the net merchandise here.

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