Hasbro’s stock plunges toward worst day in four years after profit falls well below expectations

Shares of Hasbro Inc.
HAS,
+1.38%
plunged 12.1% toward their worst performance in four years in premarket trading Tuesday, after the toy maker reported fourth quarter results that fell well short of expectations, amid sharp drops in consumer and entertainment sales. Net losses jumped to $1.06 billion, or $7.64 a share, from $128.9 million, or 93 cents a share, in the year-ago period. Excluding nonrecurring items, such as impairment of goodwill, adjusted earnings per share of 38 cents was down from $1.31 and missed the FactSet consensus of 65 cents. Revenue dropped 23.2% to $1.29 billion, below the FactSet consensus of $1.34 billion. Among Hasbro’s business segments, Wizards of the Coast and Digital Gaming revenue increased 10%, but Consumer Products revenue fell 19% and Entertainment revenue sank 31%. For 2024, the company expects Wizards of the Coast revenue to fall 3% to 5% and Consumer Products revenue to be down 7% to 14%. The stock has rallied 18.4% over the past three months through Monday while the S&P 500
SPX,
-0.09%
has advanced 13.8%.