Hasbro Shares Soar After Strong Q4 Results and Upbeat Guidance
Key Points
* Hasbro (HAS) shares surged 11% on Thursday after exceeding Q4 profit estimates.
* Aggressive cost-cutting measures, including a $1 billion reduction target by 2027, boosted earnings.
* The toy industry is expected to stabilize after several challenging years, benefiting Hasbro.
Q4 Financial Performance
* Net sales: $1.1 billion (-14.5% YoY) vs. estimates of $1.02 billion
* Adjusted operating profits: $164.8 million (+1,390% YoY) vs. estimates of $149.3 million
* Adjusted EPS: $0.46 (+21% YoY) vs. estimates of $0.34
2025 Outlook
* Total revenue growth: Slightly positive YoY
* Adjusted operating margin: 21-22%, up from 20.3% in 2024
* New cost savings target: $1 billion, increased from $750 million
Tariff Impact
President Trump's proposed tariffs could pose a risk to toy companies like Hasbro and Mattel (MAT). However, Hasbro CEO Chris Cocks indicated that the company is prepared to raise prices to offset tariff pressures.
Manufacturing Considerations
Hasbro currently manufactures in China, North Carolina, Texas, and Massachusetts. While returning more manufacturing to the US would require significant automation, Cocks noted that it would be a "pretty heavy lift."
Analyst Commentary
Brian Sozzi, Yahoo Finance's Executive Editor, highlighted Hasbro's strong execution and innovation pipeline as drivers of the company's growth potential.