https://assets.capyfin.com/instruments/678fdc13234e27009c5d5948.png avatar
Hasbro
🇺🇸 NASDAQ:HAS
View Company
OverviewEarningsDividends
•
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.

Total Revenue
$860M
Previous year: $985M
-12.6%
EPS
$0.02
Previous year: $0.78
-97.4%
Gross Profit
$510M
Previous year: $570M
-10.5%
Cash and Equivalents
$1B
Previous year: $1.15B
-13.1%
Free Cash Flow
-$66.5M
Previous year: $38.8M
-271.4%
Total Assets
$10.2B
Previous year: $5.04B
+102.9%

Hasbro

Hasbro

Hasbro 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.
  • Latin America revenues and point of sale declined and are expected to remain challenged in the second half of the year.
  • Live action production in the TV and Film space was shutdown throughout the second quarter, delaying the completion and delivery of productions and timing of revenues.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Hasbro