Toys and gaming giant, Hasbro (NASDAQ: HAS) was on an upswing at the time of writing on Thursday after it announced a deal with Lionsgate to sell its eOne film and TV business for around $500 million, consisting of $375 million in cash and Lionsgate will assume production financing loans of the movie business.
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Hasbro intends to use the proceeds of this transaction to retire a minimum of $400 million of its floating-rate debt by the end of the year and for other general corporate purposes. The sale is expected to close by the end of this year.
Meanwhile, Hasbro also announced its Q2 results and reported adjusted earnings of $0.49 per share, a decline of 57% year-over-year and below analysts’ forecasts of $0.56 per share. Even the company’s revenues fell 10% year-over-year to $1.21 billion but above Street estimates of $1.11 billion.
Looking forward to FY23, Hasbro continues to expect its revenues to decline in the range of 3% to 6% year-over-year while adjusted EBITDA is likely to stay flat year-over-year.
Analysts are bullish about HAS stock with a Strong Buy consensus rating based on six Buys and one Hold.
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