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.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org