Hasbro, Inc. Stock Heads Higher Despite Plunging Sales

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Hasbro, Inc. (NASDAQ:HAS) stock was on its way up Monday despite dropping sales for the first quarter of 2018.

Hasbro, Inc. Stock Heads Higher Despite Plunging Sales

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During the first quarter of the year, Hasbro, Inc. reported revenue of $716.34 million. This is a drop from its revenue of $849.66 million that was reported in the same period of the year prior. It is also well below Wall Street’s revenue estimate of $819.40 million for the quarter.

Hasbro, Inc. notes that there are a couple of factors that caused its sales to drop in the first quarter of 2018. The first it points out is the liquidation sales that are taking place at retailer Toys R Us as it prepares to shut down for good. The second is retail inventory overhang that it is mostly experiencing in Europe.

Earnings per share reported by Hasbro, Inc. for the first quarter of the year was 10 cents. This is down from its earnings per share of 54 cents from the same time last year. It also misses analysts’ earnings per share estimate of 34 cents for the period.

“The quarter’s revenue and profits were negatively impacted by lower revenues and higher expenses associated with events that do not reflect the health of our underlying business,” Deborah Thomas, CFO at Hasbro, Inc., said in a statement. “We remain on track to meet our goal of generating $600 to $700 million in operating cash flow this year while investing to build our brands, transform our organization and return cash to shareholders.”

Hasbro, Inc. also notes that it worked during the first quarter of 2018 to accelerate its plans to shift its business. These plans were originally set to take place over the course of the year. HAS says these efforts won’t be caught up in the Toys R Us liquidation.

HAS stock was up 1% as of Monday morning.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/04/hasbro-up-despite-q1-miss/.

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