Hasbro Q1 Earnings Slammed by TRU, but Stock Rebounds

Posted by Bret on 04/23/18 at 10:27 AM Category: Hasbro

Hasbro announced its earnings for the first quarter, as per CNBC.

Earnings per share last quarter were a miserable 10 cents, vs. an expected 33 cents. Revenues were also down sharply at $716.3 million vs. $814 million projected.

The negative news is no surprise, especially after Hasbro warned investors a few months ago that the first 2 quarters of 2018 were going to be negatively impacted by the Toys R Us bankruptcy.

The company's stock price on the NYSE took a big hit in pre-market trading, down as much as 9%. However, as of 10:15 am, early morning trading has the stock price rebounding from those losses, and posting a slight rise of 0.7%.

"As we discussed earlier in the year, our first quarter was expected to be difficult," CEO Brian Goldner said in a statement Monday. "We are working to put the near-term disruption from Toys R Us behind us."

This shouldn't be news to anyone, really. Regardless of the consumer reception of Hasbro's current overall product lineup, the Toys R Us liquidation was going to be painful and take a big chunk out of Hasbro, Mattel, and other large toy companies. There's a lot that these companies need to do to get themselves right for the post-Toys R Us world. The market continues to change rapidly, so we will see in a few months if the traditional companies are able to adapt quickly enough.