Hasbro (NASDAQ) posted lower-than-expected adjusted earnings per sy for the

Play and entertainment companies reported adjusted EPS for Q4 of 57c. This is down from 1$ per shares in the previous year and lower than the consensus estimates at 64c per share. Revenues amounted to $1.16billion. This is 4.3% more than the consensus forecast of $1.15billion.

Comparatively to 13.2% for the same period in last year, Q1’s operating margin was 10.3%.

Hasbro expects to see a mid-single digit increase in adjusted operating profits. Hasbro stated that it would continue its share repurchase plan and will buy back between $75 million to $100 million. For the entire year, the company anticipates a low single-digit increase in revenue for its consumer products business.

Hasbro observed that product availability was affected by supply chain problems, which led to delays in the spring set. Profits were also affected by increased freight and inventory costs. Hasbro will increase product prices for the second quarter to compensate.

Chris Cocks CEO at Hasbro, stated that “based on our current plans we now believe that mid-single digit adjusted operating margin growth is possible and a 16% adjusted operational profit margin are achievable for revenue growth of low single digits.”

Michael Ng of Goldman Sachs reiterated the Buy rating for the stock and set a 12-month price goal at $111.00 per share.

“We expect HAS to trade higher on the improvement in EBIT guidance (MSD growth v. LSD prior) despite headwinds from supply chain issues and the risk to $100 mn of revenue in Russia. HAS’s decision to resume share repurchases is also encouraging. HAS reiterated its revenue growth outlook for LSD and we’re encouraged by better-than-expected momentum in Consumer Products (My Little Pony, Spider-Man) and the upcoming benefits from price increases in 2Q,” Ng said in a memo.

Stifel analyst Drew Crum said that Hasbro reported 1Q results that were “mixed relative to our model,” but he is positive in the context of a slightly raised ’22 guidance.

By Senad Karaahmetovic