NASDAQ$HAS

Hasbro Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Hasbro's financial performance was ahead of expectations, positioning the company to meet full-year financial targets, driven by Wizards of the Coast and Digital Gaming's strong fan engagement and revenue growth in MAGIC: THE GATHERING.

Hasbro reported first quarter 2023 financial results, with revenues of $1.00 billion, a 14% year-over-year decline. MAGIC: THE GATHERING revenue increased by 16%. The company realized $35 million in Operational Excellence program cost savings and reaffirmed its full-year 2023 financial guidance.

  • First quarter revenues reached $1.00 billion, a 14% decrease compared to the previous year, or 13% on a constant currency basis.
  • MAGIC: THE GATHERING revenue increased by 16% year-over-year.
  • The company's first quarter operating profit was $17.9 million, with an adjusted operating profit of $47.2 million.
  • Hasbro achieved $35 million in cost savings through its Operational Excellence program year-to-date and reaffirms guidance for $150 million run-rate savings for full-year 2023.

Headline financials

Total Revenue

$1B

Previous: $1.16B-13.9%
EPS (adj)

$0.01

Previous: $0.57-98.2%
Operating margin

1.8%

Previous: 10.3%-82.5%
Adj. operating margin

4.7%

Previous: 12.2%-61.5%
Capital Expenditures

-$53.2M

Previous: -$29.2M-82.2%
Free Cash Flow

-$75.3M

Previous: $32M-335.3%
Net Income

-$22.1M

Previous: $61.2M-136.1%
Operating Income

$17.9M

Previous: $120M-85.1%
Gross Profit

$716M

Previous: $830M-13.8%
Cash & Equivalents

$386M

Previous: $1.06B-63.5%
Total Assets

$8.92B

Previous: $9.52B-6.3%
Stock-Based Comp

$15.7M

Previous: $18.1M-13.3%

Revenue & EPS history

Hasbro · Revenue · Quarterly

$1B

Q1 2023-13.9%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Hasbro · $706M total across 2 segments · Q1 2023

  • Consumer Products
    $520M-22.7%
  • Entertainment
    $185M-18.5%

Forward guidance

The Company's full-year 2023 guidance remains: Revenue down low-single digits, Adjusted operating profit margin expansion of 50 to 70 basis points, Adjusted earnings per diluted share in the range of $4.45 to $4.55, Adjusted EBITDA approximately flat with 2022 Adjusted EBITDA, Operating cash flow in the range of $600 to $700 million.

Tailwinds

  • Adjusted operating profit margin expansion of 50 to 70 basis points, excluding Operational Excellence charges and other non-GAAP items
  • Adjusted earnings per diluted share in the range of $4.45 to $4.55
  • Adjusted EBITDA approximately flat with 2022 Adjusted EBITDA
  • Operating cash flow in the range of $600 to $700 million

Headwinds

  • Revenue down low-single digits
  • Expected flat to declining toy and game market in 2023

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+2.0%

Avg return

Earnings day

+1.4%

Avg return

5 days after

-0.1%

Avg return

30 days after

64%

44 / 69 earnings

Positive

+17.1%

Q1 2019

Best reaction

-17.3%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.4%-9.2%-13.3%
Q4 2025+7.5%+5.9%-1.7%
Q3 2025+3.7%+3.7%+5.4%
Q2 2025-1.0%-1.6%+5.5%
Q1 2025+14.6%+16.9%+24.9%
Q4 2024+13.0%+12.1%-0.9%
Q3 2024-5.6%-6.7%-11.1%
Q2 2024+7.5%+10.2%+14.5%
Q1 2024+11.7%+10.6%+4.3%
Q4 2023+2.7%-1.0%+3.3%
Q3 2023-16.3%-17.5%-15.7%
Q2 2023-1.0%+2.0%+13.1%
Q1 2023+15.2%+13.9%+16.8%
Q4 2022+1.7%-3.4%-17.8%
Q3 2022-4.2%-3.3%-13.7%
Q2 2022+2.4%+2.2%+4.0%
Q1 2022+6.2%+5.3%+3.9%
Q4 2021-1.7%+0.5%-4.2%
Q3 2021+6.9%+8.2%+12.3%
Q2 2021+9.7%+7.6%+6.5%
Q1 2021+1.0%+2.5%-1.1%
Q4 2020-6.7%-6.0%-0.5%
Q3 2020-7.5%-10.1%+0.2%
Q2 2020-6.7%-6.2%+2.4%
Q1 2020-7.3%-11.3%-5.6%
Q4 2019-2.7%-3.2%-46.7%
Q3 2019-17.3%-20.1%-20.6%
Q2 2019+12.3%+14.0%+5.4%
Q1 2019+17.1%+16.4%+11.1%
Q4 2018-1.5%-0.3%-3.5%
Q3 2018-4.1%-5.4%-3.9%
Q2 2018+7.6%+7.9%+7.0%
Q1 2018+4.2%+5.5%+6.0%
Q4 2017+2.7%+2.9%-2.6%
Q3 2017-5.3%-1.1%-3.2%
Q2 2017-8.3%-8.8%-19.0%
Q1 2017+5.8%+3.2%+8.3%
Q4 2016+14.9%+18.2%+17.9%
Q3 2016+6.9%+8.7%+12.0%
Q2 2016-5.2%-6.0%-5.2%
Q1 2016+5.6%
Q4 2015-2.9%
Q3 2015-6.2%
Q2 2015+2.8%
Q1 2015+11.6%
Q4 2014+10.5%
Q3 2014+7.2%
Q2 2014-2.9%
Q1 2014+1.3%
Q4 2013+4.6%
Q3 2013+5.8%
Q2 2013+5.4%
Q1 2013+6.1%
Q4 2012+4.4%
Q3 2012-5.8%
Q4 2011+3.1%
Q2 2012+3.3%
Q1 2012+1.6%
Q3 2011+2.7%
Q2 2011-0.7%
Q1 2010+0.8%
Q1 2011-1.0%
Q4 2010-2.2%
Q4 2008-2.2%
Q3 2009+0.2%
Q3 2010+0.2%
Q4 2009+3.0%
Q2 2009+3.0%
Q2 2010+3.0%

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