Hasbro (NASDAQ:HAS) shares are down 8.1% in pre-open Thursday after the toymaker reported worse-than-expected results for the third quarter.
The company reported Q3 EPS of $1.64, $0.13 worse than the analysts' estimate of $1.77. Revenue for the quarter came in at $1.5 billion, also below the consensus estimate of $1.64B.
The Company now expects its revenue to decline 13-15%, driven by a softer toy outlook in Consumer Products. The outlook for this segment is now down to mid- to high-teens versus last year.
“Although the impact of the broader Toy category declines has changed our Consumer Products and total Hasbro outlook, we are growing share in the categories where we compete and beginning to see the benefits of our cost savings initiatives play through the P&L. Resetting our cost base and removing complexity will help ensure we are well positioned as we sharpen our innovation pipeline for 2024 and 2025,” said Gina Goetter, Hasbro chief financial officer.
Peer Mattel (NASDAQ:MAT) also saw its stock drop more than 9% after failing to raise revenue outlook despite the Q3 beat.