Hasbro (HAS) Reports Third Quarter Earnings

Hasbro reported earnings Tuesday morning that came in below analysts’ expectations as inflation weighed on consumers.

Here’s how the toy maker performed compared to Wall Street estimates, according to Refinitiv:

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

The toy maker faced difficult comparisons in the third quarter, but rising prices added pressure. “As expected, the third quarter is our toughest comparison yet, and has been further impacted by heightened price sensitivity for the average consumer,” CEO Chris Cox said in an earnings call.

Revenue fell 15% year-over-year, resulting in a 35% decline in entertainment revenue.

In the fourth quarter, the company expects stable results compared to last year.

As the prices of goods and supplies rise, the toy and games giant has increased the prices of products like Nerf Blasters and My Little Pony this year.

In early October, Cox told Final Call that the toy market remains resilient even during difficult times.

In the previous quarter, Hasbro reported relatively strong growth compared to the rest of the gaming market, aside from new releases, including an expansion of the popular Magic: The Gathering collectible card game. Wizards of the Coast, which controls Dungeons & Dragons, also posted strong earnings growth this quarter.

Rival shares Mattel have dropped significantly since September — along with the broader market — despite positive news this year, including an upcoming Barbie movie and a toy deal with SpaceX.

Read the income statement here.

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