• Hasbro stated that it expects to incur about $20 million in additional operating expenses associated with the cyber incident.
• Total revenue rose 13% year-on-year to $1 billion in the first quarter, but came lighter than the $1.1 billion consensus estimate polled by Koyfin. 
• For the full year, the company continues to expect total revenue to rise 3%-5% in constant currency.

Shares of toymaker Hasbro (HAS) declined in Wednesday morning trade after the company reported a mixed first quarter (Q1) and disclosed details about a data breach incident that occurred in March this year.

At the time of writing, HAS stock was down more than 8% and on track for its biggest single-day percentage decline in over a year.

Hasbro Data Breach

In late March, Hasbro identified a data breach of its network and contained the threat with the help of its cybersecurity advisers. However, the company is still working with them to restore its systems and operations, which it expects to be fully online in June.

The company stated that it expects to incur approximately $20 million in additional operating expenses related to the cyber incident. It also expects consumer products revenue of about $40 million to $60 million to be delayed from the second quarter (Q2) to the second half of the year.

HAS Q1 Results At A Glance

In Q1, Hasbro’s Wizards and Digital Gaming segment registered a revenue growth of 26% year-on-year. Those gains were offset by a 24% decline in Entertainment revenue.

Hasbro’s total revenue rose 13% to $1 billion, but came in lower than the $1.1 billion consensus estimate polled by Koyfin.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $339.4 million, ahead of the $317.8 million estimate. Adjusted earnings per share (EPS) were $1.47, beating the consensus estimate of an EPS of $1.29.

For the full year, the company continues to expect total revenue to rise 3%-5% in constant currency, and adjusted EBITDA between $1.40 billion and $1.45 billion, with the midpoint of the range coming below the consensus estimate.

What Retail Thinks About HAS

On Stocktwits, retail sentiment about HAS turned ‘bullish’ from ‘bearish’ over the last 24 hours.

HAS stock has gained over 9% so far this year and is up more than 30% over the past 12 months, outperforming the S&P 500.

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