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Sep 27, 2020

Hasbro Q3 2020 Earnings Report

Reported a decline in revenue due to entertainment delivery delays, but saw growth in the U.S. and Canada segment and ecomm channels.

Key Takeaways

Hasbro reported Q3 2020 revenues of $1.78 billion, a 4% decrease compared to the previous year on a pro forma basis. The company experienced growth in the U.S. and Canada segment and in ecomm channels. Adjusted operating profit increased by 230 basis points year-over-year.

Third quarter 2020 revenues were $1.78 billion, down 4% on a pro forma basis.

Revenue grew 9% in the U.S. and Canada segment and 7% in the European region; revenue grew 50% in ecomm channels globally.

Adjusted operating profit of $367.2 million or 20.7% of revenues, an expansion of 230 basis points year-over-year.

Ended the quarter with $1.13 billion in cash on the balance sheet.

Total Revenue
$1.78B
Previous year: $1.58B
+12.8%
EPS
$1.88
Previous year: $1.84
+2.2%
Adjusted Operating Margin
20.7%
Gross Profit
$990M
Previous year: $820M
+20.7%
Cash and Equivalents
$1.13B
Previous year: $1.06B
+6.8%
Free Cash Flow
$208M
Previous year: $20.7M
+905.1%
Total Assets
$10.7B
Previous year: $5.55B
+92.7%

Hasbro

Hasbro

Hasbro Revenue by Geographic Location

Forward Guidance

The company is positioned to deliver a good holiday season, with live-action entertainment production returning and expected to improve deliveries in the fourth quarter and into 2021.

Positive Outlook

  • Broad, innovative product line.
  • Leadership in gaming.
  • Excellence in global ecomm.
  • Compelling marketing campaigns.
  • Live-action entertainment production is returning.

Challenges Ahead

  • COVID-19 remains a factor in global operations.
  • Entertainment delivery delays due to live-action production shutdowns.
  • Lower TV and Film revenues.
  • Lower Family Brands revenue.
  • Loss of live events and associated artist promotions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income