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Toy manufacturer Hasbro, Inc. (NASDAQ: HAS) reported sharply lower third-quarter earnings, citing tariffs on Chinese products and higher supply chain costs. "The threat and implementation of tariffs negatively impacted our quarterly results," said Brian Goldner, chairman and chief executive officer, on Oct. 22. Hasbro reported adjusted net earnings of $213 million in the third quarter of 2019, 19% below third-quarter 2018 earnings of $264 million.
Hasbro said the turbulence from the trade war between the U.S. and China disrupted the quarter, and will have an impact on the next quarter.
The toymaker's shares have fallen to an area of potential support after posting disappointing earnings, but that does not mean a bottom or a reversal is guaranteed.
STOCKSTOWATCHTODAY BLOG Mixing It Up. The three major U.S. stock market indexes were mixed as earnings season gets under way—and after existing-home sales fell in September. The Dow Jones Industrial Average rose 97 points, or 0.
The protracted trade war between the world's two largest economies has been weighing on many U.S. companies that have exposure to China and they have responded by taking various steps ranging from price hikes to shifting production to other countries. Hasbro, which sources more than two-thirds of its U.S. products from China, is also looking at other countries for suppliers, while raising prices to combat increased costs from tariffs. "Obviously, the tariff and tariff environment has created some short-term disruption to our growth trajectory," Hasbro Chief Executive Officer Brian Goldner said on a post earnings call.
Hasbro released its third-quarter earnings today. While the revenues rose marginally during the quarter to $1.58 billion, the results disappointed analysts.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. When Hasbro Inc. thanked the Trump administration in August for delaying new tariffs on Chinese toy imports until Dec. 15, it may have been celebrating too soon.The toymaker tumbled as much as 18% Tuesday after reporting weaker-than expected third-quarter profit, a disappointing result it largely blamed on tariffs that aren’t even in place yet. The challenging quarter for Hasbro is just the latest example of U.S. companies issuing warnings about President Donald Trump’s trade spat with China.“The threat and implementation of tariffs negatively impacted our quarterly results,” Hasbro Chief Executive Officer Brian Goldner said on a call with analysts. “Importantly during the third quarter alone we saw multiple different dates for the enactment.”The shifting nature of when duties on toys would be implemented -- they were initially set for September, but are now slated for less than two weeks before Christmas -- significantly disrupted orders and the company’s supply chain. For example, some U.S. retailers that had placed large direct-shipment orders from China canceled them in July and August and asked for domestic shipments from Hasbro instead. Some of those requests were fulfilled, but the toymaker said it wasn’t able to rewrite all of the nixed orders in time.The company expects continued disruption this quarter as the tariffs are implemented -- assuming no trade deal is reached before then. Goldner tried to ease concerns by pointing out Hasbro is on track to reduce U.S. sourcing from China to 50% by the end of 2020.“We are having good success identifying and building products and geographies, including Vietnam, India and others,” he said.Shares fell the most intraday since 2015 in Tuesday trading. The stock had advanced almost 50% this year through Monday’s close, more than double the gain of the benchmark S&P 500 Index.(Updates with details from call)\--With assistance from Karen Lin, Janet Freund and Jonathan Roeder.To contact the reporter on this story: Matt Townsend in New York at email@example.comTo contact the editors responsible for this story: Anne Riley Moffat at firstname.lastname@example.org, Lisa WolfsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Hasbro, Inc. (NASDAQ: HAS ) reported third-quarter earnings of $1.84 per share on Tuesday, missing the consensus estimate of $2.21 by 16.74%. The toymaker posted quarterly sales of $1.58 billion, missing ...
Shares of Hasbro Inc. tumbled 9.6% in premarket trading Tuesday, after the toymaker reported third-quarter profit and revenue that missed expectations, as weakness in franchise brands and trade uncertainty offset strength in partner brands. Net income fell to $212.9 million, or $1.67 cents a share, from $263.9 million, or $2.06 a share, in the year-ago period. Excluding non-recurring items, such as a loss on a hedge of the British pound as part of the Entertainment One Ltd. acquisition, adjusted earnings per share came to $1.84, below the FactSet consensus of $2.21. Revenue edged up to $1.58 billion from $1.57 billion, missing the FactSet consensus of $1.72 billion. Franchise revenue fell 8% to $779.7 million, below the FactSet consensus of $899.0 million, while partner brands grew 40% to $427.0 million to beat expectations of $375.0 million. "Hasbro's global teams are executing within a dynamic trade environment that is impacting the timing of revenues, driving incremental expenses and putting upward pressure on our underlying tax rate," said Chief Financial Officer Deborah Thomas. Hasbro's stock has rallied 10.7% over the past three months through Monday while the S&P 500 has gained 0.7%.
PAWTUCKET, R.I.-- -- Third quarter 2019 revenues were $1.58 billion compared to $1.57 billion a year ago; Absent a negative $20.5 million impact of foreign exchange, third quarter 2019 revenues grew 2% Revenues increased 20% in the Entertainment, Licensing and Digital segment; Revenues decreased 2% in the U.S. and Canada segment; Revenues were flat in the International segment, but increased 4% absent ...
NEW YORK, NY / ACCESSWIRE / October 22, 2019 / Hasbro, Inc. (NASDAQ: HAS ) will be discussing their earnings results in their 2019 Third Quarter Earnings to be held on October 22, 2019 at 8:00 AM Eastern ...
Investing.com – Wall Street opened mixed on Tuesday, with the Nasdaq leading gains after a batch of mixed earnings helped to slightly ease concerns about the impact of U.S.-China trade disputes.
Hasbro posted weaker-than-expected third quarter earnings Tuesday after the toymaker said tariffs linked to the U.S.-China trade dispute clipped sales to retailers.