![Hasbro stock downgraded at CFRA post Q4 earnings, though still ‘a top player’](https://i-invdn-com.investing.com/news/LYNXNPEB9I0KU_L.jpg)
© Reuters.
On Tuesday, CFRA adjusted its score on Hasbro (NASDAQ:) shares, downgrading the corporate from Strong Buy to Buy, and lowering the value goal to $53 from the earlier $68. The new goal is ready primarily based on a 16.3 instances a number of of CFRA’s 2024 earnings per share (EPS) estimate, which aligns with Hasbro’s three-year common ahead price-to-earnings (P/E) ratio. CFRA additionally revised its EPS estimate for 2024 downward by $0.75 to $3.25 and launched an EPS estimate for 2025 at $3.75.
Hasbro reported a normalized EPS of $0.38 for the fourth quarter, which was under the $1.31 from the identical interval the earlier 12 months, and missed consensus estimates by $0.26. Revenue for the quarter was $1.29 billion, falling wanting the anticipated $1.68 billion and consensus estimates by $67 million. The firm’s efficiency within the quarter various by phase, with Digital Gaming income growing by 7%, whereas the Consumer Products and Entertainment segments noticed declines of 25% and 49%, respectively. The Entertainment phase’s vital drop was influenced by business strikes and Hasbro’s strategic exit from non-core companies in direction of the top of 2022.
The firm additionally confronted substantial impairment fees totaling $1.3 billion associated to the eOne Film and TV enterprise for the 12 months, together with $130 million in stock discount prices. For 2024, Hasbro anticipates a continued downturn in its enterprise segments, forecasting a lower of seven% to 12% in Consumer Products and a 3% to five% decline in Digital Gaming.
Despite the downgrades and lowered efficiency expectations, CFRA maintains a optimistic outlook on Hasbro.
“We believe guidance is conservative and that HAS is the top player in the space,” stated the analysts.
InvestingPro Insights
As Hasbro navigates a difficult market setting, the InvestingPro platform presents a deeper dive into the corporate’s monetary well being and future prospects. With a market capitalization of $7.12 billion, Hasbro’s monetary standing is important within the toys and leisure business. According to InvestingPro information, the corporate’s Price/Earnings (P/E) ratio stands at -12.82, indicating that traders expect a turnaround in earnings. However, wanting on the adjusted P/E ratio for the final twelve months as of Q3 2023, we see a extra favorable determine of 19.25.
InvestingPro Tips spotlight that Hasbro has maintained dividend funds for a formidable 44 consecutive years, which is a testomony to its dedication to returning worth to shareholders. This is additional supported by a sturdy dividend yield of 5.46%, as of the most recent information. Additionally, the corporate has demonstrated a powerful return during the last three months, with a 21.29% value whole return, showcasing a possible rebound in investor confidence.
While analysts anticipate a gross sales decline within the present 12 months, the corporate’s liquid belongings exceed its short-term obligations, suggesting a sound liquidity place. Moreover, regardless of not being worthwhile during the last twelve months, analysts predict Hasbro will return to profitability this 12 months. For traders in search of extra complete evaluation, InvestingPro offers further insights; there are 6 extra InvestingPro Tips obtainable at: https://www.investing.com/pro/HAS. To discover these insights, readers can use the coupon code PRONEWS24 to get a further 10% off a yearly or biyearly Pro and Pro+ subscription.
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