Hasbro Soars on Strong Q4 Results and Upbeat Guidance

Financial Performance:

* Net sales decline of 14.5% YoY to $1.1 billion (vs. estimate of $1.02 billion)
* Adjusted operating profit surge of 1,390% YoY to $164.8 million (vs. estimate of $149.3 million)
* Adjusted EPS increase of 21% YoY to $0.46 (vs. estimate of $0.34)

Outlook for 2025:

* Slight increase in total revenue
* Adjusted operating margin of 21% to 22% (compared to 20.3% in 2023)

Long-Term Guidance (2027):

* Mid-single-digit percentage annual growth in net sales
* 50 to 100 basis points annual improvement in adjusted operating margins
* $1 billion in cost savings (increased from previous guidance of $750 million)

Analysis:

Despite challenges in the toy industry, Hasbro remains optimistic about its future. The company's cost-cutting measures and innovation pipeline are expected to drive growth.

Tariff Impact:

* Hasbro and Mattel have been affected by tariffs on Chinese imports.
* Hasbro plans to raise prices to offset these pressures.
* The company also aims to increase domestic manufacturing to mitigate tariff impacts.

Executive Commentary:

CEO Chris Cocks believes that "the toy category has bottomed out" and that Hasbro will benefit from its robust innovation portfolio.

CFO Anthony DiSilvestro of Mattel stated that the company has planned for the potential impact of tariffs and is taking mitigating actions, including leveraging its supply chain and adjusting pricing.