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Hasbro (HAS) Gears Up for Q2 Earnings: What's in Store?

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Hasbro, Inc. (HAS - Free Report) is scheduled to report second-quarter 2021 results on Jul 26, before the opening bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 56.3%.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter earnings is pegged at 50 cents per share, compared with prior-year reported figure of 2 cents. The consensus mark for second-quarter earnings has been revised downward by 3.8% in the past seven days. The Zacks Consensus Estimate for revenues stands at $1.2 billion, indicating growth of 39.1% from the year-ago quarter.

Factors to Note

Hasbro’s second-quarter performance is likely to have benefited from product development, innovation and solid growth in e-commerce revenues. The company’s focus on retailers to expand online offerings bode well. Its robust Digital Gaming and Entertainment revenues growth might get reflected in the to-be-reported quarter’s top line.

The company has a vast gaming portfolio and it has been refining gaming experiences across a multitude of platforms including face-to-face gaming, off-the-board gaming and digital gaming experiences in mobile. This along with expansion of online offerings is likely to have driven the second-quarter performance. The company’s gaming category, which includes MAGIC: THE GATHERING tabletop, MONOPOLY, DUNGEONS AND DRAGONS and many other Hasbro games such as THE GAME OF LIFE, JENGA, CONNECT 4 and OPERATION, has been performing well.

The Zacks Consensus Estimate for second-quarter Eone revenues is pegged at $250 million, indicating growth of 55.3% from the year-ago quarter. The company’s second-quarter results are likely to reflect robust performance of Franchise Brands. The Zacks Consensus Estimate for Franchise Brands stands at $531 million, suggesting improvement of 40.8% on a year-over-year basis.

However, reduced customer ordering, supply chain delays and other pandemic related disruptions may have weighed on the second-quarter performance.

Hasbro, Inc. Price and EPS Surprise Hasbro, Inc. Price and EPS Surprise

Hasbro, Inc. price-eps-surprise | Hasbro, Inc. Quote

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Hasbro this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Hasbro has a Zacks Rank #3 and an Earnings ESP of +10.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:

MGM Resorts International (MGM - Free Report) has a Zacks Rank #3 and an Earnings ESP of +67.76%.

Mattel, Inc. (MAT - Free Report) has a Zacks Rank #2 and an Earnings ESP of +41.18%.

Boyd Gaming Corporation (BYD - Free Report) has a Zacks Rank #1 and an Earnings ESP of +54.29%.