Hasbro shares slide 2% premarket after Q1 profit miss

Hasbro Inc. shares slid 2% premarket Tuesday, after the toy company missed profit estimates for the first quarter, hurt by the strong dollar and as it continued to manage supply-chain issues. The company posted net income of $61.2 million, or 44 cents a share, for the quarter, down from $116.2 million, or 84 cents a share, in the year-earlier period. Adjusted per-share earnings came to 57 cents, below the 62 cent FactSet consensus. Revenue rose 4% to $1.163 billion from $1.115 billion a year ago, ahead of the $1.152 billion FactSet consensus. “As we discussed at year end, pricing increases went into effect in our consumer products business at the beginning of the second quarter and will help offset the higher input and freight costs in future quarters,” Chief Executive Deborah Thomas said in a statement. “Wizards of the Coast’ and digital gaming segment revenue rose 9% in the quarter. Consumer products segment revenue was up 3%, and entertainment revenue was up 4%. The company is now guiding for revenue growth in the low-single digits for all of 2022, despite the stronger dollar and potential risk of about $100 million in Russia, following its invasion of neighboring Ukraine. It will resume its share buyback program with plans to buy back $75 million to $150 million of its shares in the year. Shares have fallen 14.8% in the last 12 months, while the S&P 500 has gained 5%.

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