Hasbro slips after lowering outlook ahead of holiday quarter
Investors dumped Hasbro (NASDAQ:HAS) shares after the toymaker missed Wall Street estimates for third-quarter results and lowered its sales outlook indicating a weak holiday session.
The stock fell over 10% in morning trade on Thursday, erasing nearly $80 million from its market valuation of $7.60 billion, till last close.
With rising prices, consumer stopped spending on discretionary items including toys and allocated their budget on essential house-hold products.
According to a recent Seeking Alpha analysis, Hasbro’s “consumer product segment needs a second-half rebound in demand to meet FY23 projections, but there has been no improvement in point-of-sale trends so far.”
Hasbro said it expects fiscal 2023 revenue to decline 13% to 15% driven by softer toy outlook in Consumer Products. Its prior expectation was a fall of 3% to 6%.
“The impact of the broader toy category declines has had a change in our consumer products and total Hasbro outlook,” the company said.
Seeking alpha analysts and Seeking Alpha’s quant ratings are conservative on the stock and rated it a “Hold”, while Wall Street analysts consider it a “Buy”. Hasbro fell more than 20% so far this year.