Shares of toy manufacturer Hasbro (NASDAQ:HAS) dropped nearly 10% in Thursday’s trading session following its Q3 report. The company noted its Games and Toys, such as Monopoly, posted weaker-than-expected Q3 revenue. While earnings missed by $0.06, its revenue of $1.5 billion also missed analyst’s expectation of $1.64 billion.
The company also reduced its full-year guidance as slowing toy demand cut into its sales. Indeed, revenue is anticipated to fall between 13% and 15%. It had previously predicted a drop of 3% to 6%. Hasbro noted that rising prices have forced consumers to hold back on spending to cover essential household products.
However, the company is not alone in its struggle, as rival toymaker Mattel (NASDAQ:MAT) highlighted similar troubles. The Barbie-maker, which also had a disappointing third-quarter report, noted that sales may drop in the near term.
In the same tune, Mattel CFO Anthony DiSilvestro highlighted the difficulties toymakers may face going forward. DiSilvestro said higher volatility caused by macroeconomic factors may impact consumer demand. Mattel stated that it expects its full-year sales to be the same as last year’s $5.44 billion.
Shares of Mattel also declined 7% in Thursday’s trading.
Is Hasbro a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HAS stock based on five Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average HAS price target of $75.29 per share implies a 52.29% upside potential.
