Hasbro stock dropped 7.9% in morning trading despite a Q1 2026 earnings beat. Revenue came in at $1 billion, up 12.7% YoY, beating estimates. Non-GAAP EPS of $1.47 also surpassed consensus.
However, full-year EBITDA guidance midpoint of $1.43 billion missed analyst expectations of $1.45 billion, triggering a selloff. A cybersecurity incident added pressure, causing $20 million in remediation costs and $40-60 million in revenue delays.
The stock trades at a high Price/Book multiple of 21.21x, leaving it vulnerable to profit-taking. Insider selling of $20.1 million over three months also weighed.
Broader markets rose (S&P 500 +0.6%), but Hasbro underperformed. Despite CEO Chris Cocks calling Q1 a strong start, the guidance miss overshadowed results.
