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Jun 28, 2020
Hasbro Q2 2020 Earnings Report
Hasbro's Q2 2020 earnings were impacted by COVID-19, leading to a revenue decline, while digital-first orientation and gaming revenues showed positive trends.
Key Takeaways
Hasbro reported a 29% decrease in revenue to $860.3 million due to COVID-19 related disruptions, but experienced strong consumer demand and high-single digit global point of sale growth. Hasbro Gaming revenues increased by 11%, and the company is focusing on a digital-first approach. The company maintains substantial liquidity with $1.0 billion in cash and $1.5 billion available under a revolving credit facility.
Q2 2020 revenues decreased by 29% to $860.3 million due to COVID-19 impacts.
Hasbro Gaming revenues increased by 11%.
Digital-first orientation drove significant revenue and point of sale ecomm growth.
The company ended the quarter with $1.0 billion in cash and access to a $1.5 billion revolving credit facility.
Revenue by Geographic Location
Forward Guidance
Hasbro expects the environment to improve in Q3 and is positioned for a good holiday season. They are also positioned to benefit from investments in ecomm, entertainment and digital gaming. The company expects to deliver against its plan of $130 million in synergies by year-end 2022.
Positive Outlook
- Consumers are relying on Hasbro brands and stories to connect and entertain themselves.
- The outlook is expected to improve from Q3.
- The company is set to execute a good holiday season.
- A strong entertainment lineup is expected for 2021.
- The company is on track to deliver against its plan of $130 million in synergies by year-end 2022.
Challenges Ahead
- The full-year COVID-19 impact geographically remains unpredictable.
- Global closures in the supply chain, across retailers, and in entertainment production impacted revenue.
- Some customers remained closed throughout the second quarter and cash collections have been extended.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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