What Happened:

Shares of toy and entertainment company Hasbro (NASDAQ:HAS) fell 14.5% in the morning session after the company reported fourth-quarter results with revenue that missed analysts' expectations as its consumer products and entertainment segments declined 25% and 49% year on year. Its Wizards of the Coast and Digital Gaming segment was a silver lining (7% growth) but not enough to move the needle on company-level performance. The company's full-year 2024 EBITDA guidance also missed Wall Street's forecast. On the bright side, Hasbro initiated a quarterly dividend of $0.70 per share, payable on May 15, 2024, to shareholders at the close of business on May 1, 2024. Overall, the results could have been better.

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What is the market telling us:

Hasbro's shares are not very volatile than the market average and over the last year have had only 7 moves greater than 5%. Moves this big are very rare for Hasbro and that is indicating to us that this news had a significant impact on the market's perception of the business.

Hasbro is down 1.6% since the beginning of the year, and at $49.07 per share it is trading 32.7% below its 52-week high of $72.92 from September 2023. Investors who bought $1,000 worth of Hasbro's shares 5 years ago would now be looking at an investment worth $545.63.

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