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• Hasbro Inc. (HAS) reported first-quarter FY22 net revenue growth of 4% year-on-year to $1.16 billion, beating the consensus of $1.15 billion.
• Revenues from the Wizards of the Coast and Digital Gaming segment rose 9%, Consumer Products gained 3%, and the Entertainment segment climbed 4%.
• The operating margin was 10.3%, and operating income for the quarter fell 19% to $120 million.
• Adjusted EBITDA of $192.1 million decreased 24% Y/Y.
• Adjusted EPS of $0.57 missed the consensus of $0.61.
• The company held $1.1 billion in cash and equivalents as of March 27, 2022.
• Buyback: Hasbro plans to resume repurchases this quarter, with a target of repurchasing $75 million - $150 million of common stock in the open market this year.
• As previously announced in February, the company's board approved an increase of 3% to $0.70 per common share for the next quarterly dividend, payable on May 16, 2022, to shareholders of record on May 2, 2022.
• "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," said CFO Deborah Thomas.
• Outlook: Hasbro expects mid-single-digit growth in operating profit (prior view low-single-digit rate) for FY22.
• The company still expects low-single-digit revenue growth despite the strengthening of the U.S. dollar and the potential risk of approximately $100 million in Russia.
• Price Action: HAS shares closed lower by 1.98% at $83.53 on Monday.