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Hasbro's (HAS) Q2 Earnings Beat, Sales Miss Marginally

Hasbro Inc. HAS along with its subsidiaries, provides children’s and family leisure time products and services globally. Hasbro’s product segments comprise Games, Girls, Preschool and Boys categories.

Given Hasbro’s strong product line-up, which includes its core brands, licensed brands and lucrative product associations, the company remains well positioned for future growth. Moreover, the company’s consistent efforts to establish its global presence through strategic partnerships and rapid growth in emerging markets bode well. Meanwhile, increased investments in digital gaming market should drive revenues.

However, lack of growth in some of its brands and an increase in costs related to initiatives undertaken to boost its business remain primary concerns. Additionally, a challenging retail environment for toys in the U.S. remains threat to top-line growth.

Investors should note that the consensus estimate for Hasbro has remained stable over the last 60 days. Meanwhile, HAS’s earnings have been strong over the past few quarters. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 16.54%. Revenues too posted positive surprises in each of the trailing four quarters.

Hasbro, Inc. Price and EPS Surprise

HAS currently has a Zacks Rank #2 (Buy) but that could change following Hasbro’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: HAS beats on earnings. Our consensus earnings estimate called for earnings per share of 46 cents, and the company reported adjusted earnings of 53 cents per share. Investors should note that these figures take out stock option expenses.

Revenues: HAS reported revenues of $972.5 million. This marginally lagged our consensus estimate of $973 million.

Key Stats to Note: Notably, the company witnessed year-over-year improvement in revenues in three out of its four brand portfolios – Franchise, Partner and Hasbro Gaming – with Emerging Brands being the exception. Moreover, it recorded revenue growth in two of its reporting segments – U.S. & Canada and International, while the Entertainment & Licensing segment sales declined year over year.

Stock Price Impact: At the time of writing, the stock price of Hasbro was down 1.3% during the pre-market trading hours following the earnings release.

Check back later for our full write up on this HAS earnings report!

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