Hasbro Falls Over 8% During Trading, Full-Year Sales Guidance at Lower End of Expectations

One of the world's largest toy and board game companies, Hasbro, saw its stock price drop by more than 8% during trading on Wednesday. The company maintained its full-year sales growth guidance of 3%-5%, not further raising it, which is essentially in line with the average expectation of 5% growth by Bloomberg analysts.

The company had a strong performance in the first quarter, with sales growing by 13% year-on-year to 1 billion dollars, and adjusted earnings per share reaching 1.47 dollars, higher than the expected 1.13 dollars by analysts. However, if the full-year growth can only be maintained at a range of 3% to 5%, it implies that the growth rate in the following quarters will significantly slow down.

From a business segment perspective, the gaming department has become the main engine of growth, with a 26% increase in revenue in the first quarter; the traditional toy business income remained flat, while the entertainment business declined, indicating that the company's growth is not a comprehensive recovery.

On the cost side, there are also additional pressures. The company's CFO, Gina Goetter, said on the investor call that due to the rise in oil prices, the cost is expected to increase by 30 million dollars this year; at the same time, the company is applying for a tariff refund of about 50 million dollars.