Hasbro earnings miss expectations amid Toys R Us demise
PAWTUCKET, R.I. (AP) — Hasbro returned to a profit in its fourth quarter, but the toy company’s performance still fell short of Wall Street’s expectations as it continues to deal with the demise of Toys R Us.
Shares fell 7.3 percent in Friday premarket trading.
Hasbro Inc., whose brands include Nerf and Power Rangers, earned $8.8 million, or 7 cents per share, for the period ended Dec. 30. A year earlier it lost $5.3 million, or 4 cents per share.
Stripping out one-time gains and costs, earnings were $1.33 per share. That’s sharply below the $1.68 per share that analysts polled by Zacks Investment Research expected.
Revenue for the company based in Pawtucket, Rhode Island, dropped 13 percent to $1.39 billion, short of the $1.52 billion Wall Street predicted.
Chairman and CEO Brian Goldner said in a statement that Hasbro wasn’t able to recapture as much of the Toys R Us business during the holidays as it expected. The company was also contending with changing consumer shopping behaviors in Europe and reduced retail inventory, he added.
For the year, Hasbro reported an adjusted profit of $2.11 per share on revenue of $4.58 billion.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on HAS at https://www.zacks.com/ap/HAS