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Sep 26, 2021

Hasbro Q3 2021 Earnings Report

Hasbro reported strong revenue, operating profit, and earnings growth.

Key Takeaways

Hasbro reported an 11% increase in revenue to $1.97 billion, driven by strong growth in the Entertainment and Wizards of the Coast and Digital Gaming segments. Operating profit increased by 9% to $367.9 million, and net earnings rose by 15% to $253.2 million.

Third quarter revenue increased by 11% to $1.97 billion.

Entertainment segment revenue increased by 76%.

Wizards of the Coast and Digital Gaming segment revenue increased by 32%.

Operating profit increased by 9% to $367.9 million.

Total Revenue
$1.97B
Previous year: $1.78B
+10.9%
EPS
$1.96
Previous year: $1.88
+4.3%
Adjusted Operating Margin
19.8%
Previous year: 20.7%
-4.3%
Gross Profit
$1.19B
Previous year: $990M
+20.1%
Cash and Equivalents
$1.18B
Previous year: $1.13B
+4.3%
Free Cash Flow
$73.5M
Previous year: $208M
-64.7%
Total Assets
$10.2B
Previous year: $10.7B
-4.4%

Hasbro

Hasbro

Hasbro Revenue by Geographic Location

Forward Guidance

For the full year, the company continues to target double-digit revenue growth, currently expected in the range of 13% to 16%, and operating margins in line with last year's adjusted level of approximately 15%.

Positive Outlook

  • Targeting double-digit revenue growth for the full year.
  • Revenue growth is expected to be in the range of 13% to 16%.
  • Operating margins are expected to be in line with last year's adjusted level of approximately 15%.
  • Orders support the high end of the revenue growth range.
  • Delivered much of what was delayed in the third quarter despite continued supply chain challenges.

Challenges Ahead

  • Supply chain factors could impact the ability to fully achieve the upside.
  • Consumer Products segment revenue and operating profit declined slightly.
  • Global consumer point of sale declined mid-single digits as in stock levels were below targets.
  • Supply chain disruption resulted in approximately $100 million of orders that were not filled in the quarter.
  • Operating profit and margin were negatively impacted by the lower revenue due to shipping challenges as well as higher freight costs to facilitate product deliveries.

Revenue & Expenses

Visualization of income flow from segment revenue to net income