Fourth quarter results miss estimates and company forecasts slumping toy sales in 2024

  • Hasbro shares sink 14% after projecting lower 2024 toy sales
  • Fourth quarter results miss estimates
  • Company forecasts slumping toy sales in 2024
  • Consumer products segment revenue expected to decline 7% to 12%
  • Hasbro’s sales fell 15% to $5 billion in 2023
  • Analysts expect 2024 revenue to decline by 4.6%
  • Revenue from Wizards of the Coast segment expected to decline 3% to 5%
  • Hasbro’s sales fell 23% in the fourth quarter
  • Hasbro posts over $1 billion loss in Q4 due to divestment of eOne business

Shares of Hasbro fell 14% after the toymaker’s fourth quarter results missed estimates and the company projected a decline in toy sales for 2024. Hasbro’s consumer products segment revenue is expected to decline by 7% to 12%, with a shift to an out-license model accounting for four points of decline. The company’s sales in 2023 fell by 15% to $5 billion, and analysts expect a further decline of 4.6% in 2024. Revenue from Hasbro’s Wizards of the Coast segment is forecasted to decline by 3% to 5%, driven by comparisons in licensed digital gaming. The company’s sales in the fourth quarter, including the crucial holiday period, fell by 23%. Hasbro posted a loss of over $1 billion in the fourth quarter due to a divestment of its eOne film and television business.

Public Companies: Hasbro (HAS)
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Factuality Level: 7
Justification: The article provides specific information about Hasbro’s financial performance in the fourth quarter and its forecast for toy sales in 2024. It includes data on revenue decline and analysts’ expectations. However, it lacks context on the overall toy industry and does not provide a balanced perspective on Hasbro’s performance compared to its competitors.

Noise Level: 4
Justification: The article provides relevant information about Hasbro’s financial performance, including missed estimates, forecasted sales decline, and the reasons behind it. However, it lacks in-depth analysis, evidence, and actionable insights. It also includes some repetitive information and focuses more on financial figures rather than exploring the consequences of these results on the company and its stakeholders.

Financial Relevance: Yes
Financial Markets Impacted: Shares of Hasbro

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses Hasbro’s financial results and forecasts for toy sales. However, there is no mention of an extreme event.

Reported publicly: www.marketwatch.com