Hasbro Inc. (HAS, -0.28%) has experienced a positive stock market response, with a 2.5% increase in premarket trades. The company exceeded its revenue target, although it fell short on adjusted earnings.
Financial Performance
In the second quarter, Hasbro reported a loss of $235 million, or $1.69 per share. This contrasts with a profit of $1.42 million, or $1.02 per share, during the same period last year. Adjusted earnings for the three months ending on June 30 were 49 cents per share, below the analyst expectation of 56 cents per share according to FactSet data. Despite this, revenue declined by 10% to $1.21 billion but surpassed the analyst estimate of $1.12 billion.
Successful Quarter
CEO Chris Cocks expressed satisfaction with the company’s performance in the last quarter. Hasbro achieved better-than-expected revenue while also reducing inventory and making progress on cost-saving programs. Cocks attributed this success to the growth of its Transformers franchise, the return of Furby, and the release of Magic: The Gathering’s Universes Beyond set.
Future Outlook
Looking ahead, Hasbro aims to achieve a 3% to 6% revenue decline by 2023.