Hasbro, Inc. Faces Investigation After 18% Revenue Decline Announcement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: PRnewswire
- Revenue Decline: Hasbro reported an 18% year-over-year decline in Consumer Product revenues for Q3 2023, primarily driven by exited businesses, soft industry trends, and a focus on inventory management, highlighting increasing market challenges for the company.
- Guidance Revision: The company revised its full-year Consumer Product revenue guidance from a previously expected decline of 3%-6% to a projected decline of 13%-15%, reflecting a pessimistic outlook that could undermine investor confidence.
- Legal Action: Hasbro and certain executives are facing a securities class action lawsuit for failing to disclose material information, which violates federal securities laws, with ongoing investigations that may further impact the company's reputation and financial standing.
- Investigation Initiated: Kahn Swick & Foti has commenced an investigation into whether Hasbro's officers and directors breached their fiduciary duties to shareholders, and adverse findings could expose the company to significant legal risks.
Analyst Views on HAS
Wall Street analysts forecast HAS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HAS is 95.71 USD with a low forecast of 90.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
7 Buy
1 Hold
1 Sell
Moderate Buy
Current: 86.200
Low
90.00
Averages
95.71
High
100.00
Current: 86.200
Low
90.00
Averages
95.71
High
100.00
About HAS
Hasbro, Inc. is a game, intellectual property (IP) and toy company. The Company delivers play experiences to kids, families, and fans around the world, through physical and digital games, video games, and toys, among others. Its Consumer Products segment engages in the sourcing, marketing and sales of toy and game products around the world. Its Wizards of the Coast and Digital Gaming segment engages in the promotion of the Company's brands through the development of trading cards, role-playing and digital game experiences based on Hasbro and Wizards of the Coast games. Its Entertainment segment engages in the development and production of Hasbro-branded entertainment content, including film, television, children’s programming, digital content and live entertainment focused on Hasbro-owned properties. Its portfolio of brands includes MAGIC: THE GATHERING, DUNGEONS & DRAGONS, MONOPOLY, HASBRO GAMES, NERF, TRANSFORMERS, PLAY-DOH and PEPPA PIG, as well as premier partner brands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
