Here's What Caused Hasbro to Drop Over 17% Early Tuesday
Shares of Hasbro, Inc. (NASDAQ: HAS), a worldwide entertainment company producing toys and games, among other products, traded as much as 17.7% lower early Tuesday after the company released disappointing third-quarter results. But part of the problem may be out of the company's hands.
Revenues moved slightly higher, compared to the prior year's third quarter, to $1.58 billion, but that result missed analysts' estimates calling for $1.72 billion. Adjusted net earnings checked in at $233.8 million during the third quarter, or $1.84 per share, which also lagged far behind analysts' estimates calling for $2.21 per share. Despite misses on the top and bottom lines, there were bright spots in the data, including a 40% surge in Partner Brands revenue, which includes products using popular Marvel and Star Wars characters, among others. That third-quarter surge in Partner Brands revenue was just enough to offset 8% and 17% declines in Franchise Brands and Hasbro Gaming, respectively.
Partner Brands revenue is a bright spot, thanks to products from popular franchises such as Star Wars. Image source: Hasbro.
Source Fool.com
