Hasbro’s shares fell 2 per cent to $81.80 in low-volume premarket trading as a jump in freight and raw material costs bit into the company’s earnings
While demand for toys has surged since the start of the pandemic as children spent more time at home, factory shutdowns, a lack of container ships and long port delays have caused costs to surge and squeezed profit margins at Hasbro.Hasbro reported adjusted net earnings 57 cents per share in the quarter ended March 27, missing estimates of 61 cents per share, according to Refinitiv IBES data.
However, the Monopoly maker’s net revenue rose 4 per cent to $1.16-billion, beating estimates of $1.15-billion, boosted by demand for role-playing games “Magic: The Gathering” and “Dungeons & Dragons.” The success of the unit that houses those games has drawn the attention of activist investor Alta Fox Capital Management LLC, which is pushing Hasbro to spinoff the business.
Hasbro said it expects fiscal 2022 operating profit to rise in the mid-single digits, compared with its previous forecast of a low-single-digit increase. Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter.
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