Hasbro stock was moving into and out of positive territory on Tuesday after the toy maker reported mixed second-quarter results.
Hasbro (ticker: HAS) said it earned an adjusted $1.15 a share, while analysts were predicting 94 cents. Revenue climbed 1.3% to $1.34 billion from the year-ago period, remaining slightly below the $1.37 billion consensus estimate.
Hasbro’s franchise, partner, and emerging brands all recorded increases in revenue from a year earlier, while its gaming and film and entertainment divisions saw declines.
Looking ahead, the company noted in its press release that it had taken “significant steps to secure inventory” for future product launches and the key holiday season. It repeated its financial forecasts for the full year, including revenue growth in the low single digits.
Shortly after the open, Hasbro stock was down 1.1% at $78.54, while the S&P 500 was up 1.1%. It had recorded a loss and then moved higher in premarket trading.
The shares are off more than 22% in 2022, slightly more than the broader market’s decline of nearly 20%. Earlier this year, activist investors had argued the company should spin off its Wizards of the Coast unit, but shareholders rejected an effort to shake up the board of directors to push through the change at the company’s annual meeting last month. Hasbro said its Wizards of the Coast unit had its biggest quarter on record in the second quarter.
Analysts have argued that toys tend to be more resilient in economic downturns, and 80% of those tracked by FactSet are bullish on Hasbro.
Write to Teresa Rivas at [email protected]
Credit: www.marketwatch.com /