Hasbro stock rebounds after downbeat third-quarter revenue outlook

50
1
Hasbro stock rebounds after downbeat third-quarter revenue outlook

Hasbro Inc. shares took a midday dive into the red and then bounced back into the green after the toy maker provided a downbeat third-quarter revenue outlook and cut its full-year outlook. After being up as much as 6.2% in morning trading, the stock dropped as much as 3.3% after the outlook update before bouncing back to a gain of 0.5% in recent trading. The company said at Investor Da that it expects third-quarter revenue to be down about 15% from a year ago, while the current FactSet revenue consensus of $1.89 billion implied a 3.9% decline. The company believes that revenue growth in the low-single digit percentage range will be flat in the year 2022, compared to the guidance provided in July of revenue growth in the low-single digit percentage range. Hasbro said it targets a compounded annual growth rate CAGR in the mid-single digit percentage range to achieve revenue of at least $8.5 billion through 2027, and the company had revenue of $6.42 billion in 2021. Hasbro has announced Blueprint 2.0, a new strategic approach to managing its business to monetize intellectual property, drive investments, and create shareholder value. The stock has lost 14.8% over the past three months, while the S&P 500 SPX has lost 1.1%.