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We expect Hasbro Inc. (HAS - Analyst Report), the worldwide leader in children's and family entertainment products and services, to beat earnings expectations when it reports first-quarter 2013 results before the opening bell on Apr 22.

Why a Likely Positive Surprise?

Our proven model shows that Hasbro has the right combination of two key ingredients to beat earnings.

Positive Zacks ESP: The Earnings ESP (Read: Zacks Earnings ESP: A Better Method) for Hasbro is  at +33.33% – the difference between the Most Accurate estimate of 4 cents per share and the Zacks Consensus Estimate of 3 cents per share. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.

Zacks Rank #3 (Hold): Hasbro’s Zacks Rank #3 (Hold) increases the predictive power of its ESP. The combination of its Zacks Rank and +33.33% Earnings ESP makes us confident of a positive earnings surprise in the to-be-reported quarter.

Note that stocks with Zacks Ranks of #1, 2 and 3 have a significantly higher chance of beating earnings. The Sell rated stocks (#4 and 5) should never be considered going into an earnings announcement.

Drivers of Better-than-Expected Earnings

We believe Hasbro is likely to beat earnings in first-quarter gaining from its Entertainment backed products, growing Girls’ category and stabilizing Games and Puzzle segments and cost controlling initiatives. Hasbro has been consistently trying to expand its business in the emerging markets in order to increase its international revenues. We expect this to provide Hasbro with a considerable up-market potential and prove accretive to first-quarter earnings.

Hasbro is riding high with its strong product line-up, key licensed brands and lucrative strategic partnerships with several gaming entities. Benefiting from this, the company has been performing favorably and has delivered an average earnings surprise of 1.32% over the last four quarters.

Other Stocks to Consider

Hasbro is not the only stock performing impressively this earnings season. We also observe that there are other companies, which are likely to beat earnings.

Hyatt Hotels Corporation (H - Snapshot Report) has Earnings ESP of +12.50% and a Zacks Rank #3 (Hold).

Marriott International, Inc. (MAR - Analyst Report) has Earnings ESP of +4.88% and a Zacks Rank #3 (Hold).

Wyndham Worldwide Corporation (WYN - Analyst Report) has Earnings ESP of +3.03% and a Zacks Rank #3 (Hold).

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