Hasbro, Inc. (HAS: Quote) Friday said it expects to report fourth-quarter revenue below analysts’ expectations, due to less-than-anticipated consumer demand in the U. S. and certain international markets through much of the holiday season.
For the fourth quarter 2012, the games and toy-maker anticipates revenues to be about $1.28 billion, including a negative $8 million impact from foreign exchange. Analysts expect the company to report revenues of $1.40 billion for the quarter.
However, the company said it grew its operating profit margin and earnings per share, excluding the fourth quarter restructuring charges and the impact of foreign exchange.
Brian Goldner, president and chief executive officer of the company said, “Based on preliminary results, we returned the U.S. and Canada segment to historical operating profit levels; we grew revenues in the Games category against our 2012 objective of stabilizing revenues; and we grew revenues in our Girls category.”
The company said it experienced double-digit growth in its emerging markets business and achieved profitability in most major emerging markets a year ahead of its plan.
Based on preliminary full-year results, the company expects to report earnings per share for 2012, excluding fourth quarter restructuring charges, in the range of $2.73 to $2.75. This includes about $0.10 per diluted share negative impact from foreign exchange in 2012.
For the full-year 2012, adjusted earnings per share are expected to be in the range of $2.83 to $2.85. This excludes about $0.10 per share negative impact from foreign exchange in 2012 as well as fourth-quarter restructuring charges.
Revenues are projected at $4.09 billion, down from $4.29 billion in 2011.
Analysts currently expect the company to report full-year earnings of $2.85 per share on revenues of $4.21 billion.
The company also expects to incur pre-tax charges of approximately $37 million, and an additional estimated restructuring charges of about $20 to $30 million. Amid a challenging environment, the company plans to reduce ongoing expenses, including an approximate 10 percent reduction in workforce.
“We believe a reduction in ongoing costs in a challenging environment will deliver the greatest long-term return to our shareholders, ” said Deb Thomas, CFO.
HAS closed Thursday’s regular trading at $38.45 on the Nasdaq. In the pre-market activity, the shares are down 2.68 percent.
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by RTT Staff Writer
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