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Hasbro Q4 Adj. Profit Beats View, But Revenue Misses; Hikes Dividend

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Toy and board game company company Hasbro, Inc. (HAS) on Wednesday reported a net loss for the fourth quarter, reflecting lower revenues and a charge related to the U.S. tax reform.

However, adjusted earnings per share beat analysts' expectations, while revenues missed their estimates. The company's shares are losing more than 4 percent in pre-market activity.

Net loss attributable to Hasbro for the fourth quarter was $5.30 million or $0.04 per share, compared to net earnings of $192.73 million or $1.52 per share in the year-ago period.

The latest quarter's results included a net charge of $296.51 million or $2.35 per share related to the U.S. tax reform. It also includes a $0.09 per share benefit from the adoption of FASB ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting.

Excluding the U.S. tax reform charge, adjusted earnings for the quarter were $2.30 per share, compared to $1.64 per share in the year-ago period.

On average, 14 analysts polled by Thomson Reuters expected earnings of $1.80 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter decreased 2 percent to $1.60 billion from $1.63 billion in the year-ago period and includes a favorable $44.3 million from foreign exchange. Analysts expected revenues of $1.72 billion for the quarter.

Franchise Brands revenues for the quarter increased 11 percent, while Partner Brands revenues fell 21 percent, Hasbro Gaming revenues decreased 4 percent and Emerging Brands revenue declined 5 percent.

Hasbro noted that overall consumer demand slowed in November and December both for the company and the industry. The company added that a decline in Partner Brands and Europe revenues resulted in it not meeting its fourth-quarter revenue expectations.

Hasbro's board of directors has declared a quarterly cash dividend of $0.63 per common share. This represents an increase of $0.06 per share, or 11 percent, from the previous quarterly dividend of $0.57 per common share.

The dividend will be payable on May 15, 2018 to shareholders of record at the close of business on May 1, 2018.

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