Hasbro Flops as Margin Improvements Fail to Impress - InvestingChannel

Hasbro Flops as Margin Improvements Fail to Impress

Game maker Hasbro, Inc (NASDAQ:HAS) reported third-quarter 2020 earnings with a revenue of $1.78 billion, down 4% year-over-year on a Pro-forma basis and up 12.8% YoY on an actual basis, beating consensus by $40 million.

Adjusted diluted earnings per share of $1.88 beat consensus by 26 cents.

Q3 revenue from U.S. and Canada segment grew 9% YoY to $977.1 million; international segment revenue declined 8% YoY to $517 million; digital segment revenue declined 23% to $89 million; eOne segment revenue plunged 32% YoY to 193.47 million.

Hasbro’s Q3 adjusted operating margin expanded 230 basis points YoY to 20.7% at $367.22 million.

Said CEO Brian Goldner, “Our broad, innovative product line, including leadership in gaming, excellence in global ecomm and compelling marketing campaigns drove meaningfully better performance in the third quarter.”

Hasbro reported an adjusted EBITDA margin of 24.1% to $428.23 million, an improvement of 1.34% YoY.

The company generated an operating cash flow of $494.3 million and ended the quarter with $1.13 billion in cash.

Hasbro did not report specific revenue or earnings guidance.

“Building off this quarter’s growth in toys, games and digital, we are positioned to deliver a good holiday season,” Goldner continued. “Live-action entertainment production is returning, and we are set to improve deliveries in the fourth quarter with some moving into 2021.”

HAS shares jettisoned $8.20, or 8.9%, to $83.80.