Wall Street Loses Ground on Monday

Hasbro falls more than 3%

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Omar Venerio
Oct 22, 2018
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U.S. stock market indexes fell on Monday, with the S&P 500 posting its fourth day of losses. The Dow Jones Industrial Average fell 0.40% to 25,344, the S&P 500 index declined 0.35% to 2,758 and the Nasdaq Composite Index gained 0.32% to 7,473.

Shares of Hasbro Inc. (

HAS, Financial) fell more than 3% after the company posted third-quarter earnings of $1.93 per share on $1.57 billion in revenue, reflecting a 12.3% decline year over year. The company fell 30 cents short of earnings estimates and $140 million short of revenue expectations.

During the quarter, sales in the U.S. and Canada segment decreased 7% to $924.2 million. The division reported an operating profit of $226.5 million, or 24.5% of net revenues, compared to an operating profit of $217.3 million, or 21.9% of net revenues, in the comparable prior-year period. Sales were negatively impacted by the loss of Toys 'R' Us.

In the international segment, net revenues declined 24% to $560.7 million, compared to $739.2 million in the prior-year quarter. Net revenue in Europe declined 29%, while sales in Latin America slid 16% and Asia revenues decreased 18%. The segment reported an operating profit of $66.3 million, down from $132 million in 2017. Those figures were negatively impacted by efforts to clear excess retail inventory in Europe, as well as the loss of Toys 'R' Us.

Net revenues in the entertainment and licensing business grew 45% to $84.8 million. The operating profit almost doubled to $33.7 million, or 39.7% of net revenues.

During the quarter, the company repurchased 801,466 shares of common stock for a total cost of $79.5 million. The stock traded for an average price of $99.14 per share.

Gainers

Losers

Global markets

The main European stock markets traded lower. The U.K.'s FTSE 100 fell 0.10%, France's CAC 40 lost 0.62%, Germany's Dax slid 0.26% and Spain's IBEX 35 slipped 0.96%.

In Asia, Japan's Nikkei 225 gained 0.37%, Indias BSE Sensex lost 0.53%, Hong Kong's Hang Seng advanced 2.32% and China's Shanghai Composite jumped 4.09%.

Disclosure: The author holds no positions in any stocks mentioned.

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Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.