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Hasbro traded lower early on Friday after the toy company set Q4 sales and EPS guidance below expectations.
As part of a cost savings initiative at the company, Hasbro (NASDAQ:HAS) is eliminating abou 15% of its workforce and reshuffling some management positions.
On Wall Street, Bank of America said it remained cautious on Hasbro (HAS) following the announcements. Analyst Jason Haas said Hasbro (HAS) has proven its ability to develop compelling content and brands that engage kids, families, and the broader fan community and the company is focused on implementing its Blueprint 2.0 strategy, unveiled in October, which includes: a focus on fewer, bigger brands, gaming, digital, and the direct to consumer and licensing business. However, the firm has remain concerns that the company has been overproducing Magic: The Gathering in a worsening economic backdrop, which could damage the long-term value of the brand. BofA has an Underperform rating on HAS.
Jefferies was more forgiving with its breakdown, calling the magnitude of the consumer products miss a negative surprise, but calling for patience on an earnings turnaround. The firm kept a Buy rating on Hasbro (HAS) in place.
Shares of Hasbro (HAS) fell 4.89% premarket on Friday to $60.66 after the corporate update.
