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Hasbro (HAS) Gears Up for Q4 Earnings: What's in Store?
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Hasbro, Inc. (HAS - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 7, 2022, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 13.3%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 87 cents per share, indicating a decline of 31.5% from $1.27 registered in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1,863 million, which suggests an increase of 8.1% from the prior-year quarter’s figure.
Let’s analyze the factors that are likely to make an impact this earnings season.
Factors to Note
Hasbro’s fourth-quarter performance is likely to have benefited from strong gaming demand, expansion of licensed consumer products as well as Wizards of the Coast table-top gaming, digital gaming and entertainment offerings. This along with the lapping of shipment orders from the previous quarter and effective supply chain management is likely to have driven the fourth quarter’s top line. During the previous quarter, Wizards of the Coast and the digital gaming segment’s revenues increased 32% year over year. Given the emphasis on digital avenues by improving the gameplay in downloadable content, the company anticipates the momentum to continue in the fourth quarter as well.
A robust content road map from eOne is likely to have driven the company’s performance in the fourth quarter. During the previous-quarter earnings call, the company noted planned deliveries including Graymail (a new scripted program for Netflix), additional episodes of The Rookie and Yellowjackets and the films Clifford the Big Red Dog and Mrs in the to-be-reported quarter. Notably, emphasis on adapting plans to deliver a robust line-up of entertainment and innovation from E1 and its partners is likely to have driven the fourth-quarter top line. The Zacks Consensus Estimate for fourth-quarter Entertainment revenues is pegged at $330 million, indicating growth of 54.2% from the year-ago quarter’s levels.
Moreover, the solid performance of Emerging Brands is likely to have benefitted the company in the fourth quarter. The Zacks Consensus Estimate for revenues from Emerging Brands is pegged at $188 million, indicating growth of 21.3% on a year-over-year basis.
Reduced customer ordering, supply chain challenges and other pandemic-related disruptions are likely to have exerted pressure on the company’s performance in the fourth quarter. This along with the dismal performance of Franchise Brands and Partner Brands is likely to have affected the company’s results in the to-be-reported quarter. The Zacks Consensus Estimate for Franchise Brands and Partner Brands is pegged at $698 million and $344 million, suggesting a decline of 1% and 1.7%, respectively, on a year-over-year basis.
Increased expenses (related to future game developments and support of new game launches) coupled with a rise in freight costs and digital gaming depreciation is likely to have hurt margins in the to-be-reported quarter.
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.
Earnings ESP: Hasbro has an Earnings ESP of +2.50%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat:
Oxford Industries, Inc. (OXM - Free Report) has an Earnings ESP of +2.97% and a Zacks Rank #1.
Shares of Oxford Industries have gained 28.4% in the past year. OXM’s earnings topped the consensus mark thrice but missed the same on one occasion, the average surprise being 96.7%.
PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +42.71% and a Zacks Rank #2.
Shares of PlayAGS have gained 34.3% in the past year. AGS’ earnings topped the consensus mark thrice but missed the same on one occasion, the average surprise being 33.3%.
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank #3.
Shares of Boyd Gaming have gained 25.4% in the past year. BYD’s earnings topped the consensus mark in all of the trailing four quarters, the average surprise being 56.4%.
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Hasbro (HAS) Gears Up for Q4 Earnings: What's in Store?
Hasbro, Inc. (HAS - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 7, 2022, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 13.3%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 87 cents per share, indicating a decline of 31.5% from $1.27 registered in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1,863 million, which suggests an increase of 8.1% from the prior-year quarter’s figure.
Hasbro, Inc. Price and EPS Surprise
Hasbro, Inc. price-eps-surprise | Hasbro, Inc. Quote
Let’s analyze the factors that are likely to make an impact this earnings season.
Factors to Note
Hasbro’s fourth-quarter performance is likely to have benefited from strong gaming demand, expansion of licensed consumer products as well as Wizards of the Coast table-top gaming, digital gaming and entertainment offerings. This along with the lapping of shipment orders from the previous quarter and effective supply chain management is likely to have driven the fourth quarter’s top line. During the previous quarter, Wizards of the Coast and the digital gaming segment’s revenues increased 32% year over year. Given the emphasis on digital avenues by improving the gameplay in downloadable content, the company anticipates the momentum to continue in the fourth quarter as well.
A robust content road map from eOne is likely to have driven the company’s performance in the fourth quarter. During the previous-quarter earnings call, the company noted planned deliveries including Graymail (a new scripted program for Netflix), additional episodes of The Rookie and Yellowjackets and the films Clifford the Big Red Dog and Mrs in the to-be-reported quarter. Notably, emphasis on adapting plans to deliver a robust line-up of entertainment and innovation from E1 and its partners is likely to have driven the fourth-quarter top line. The Zacks Consensus Estimate for fourth-quarter Entertainment revenues is pegged at $330 million, indicating growth of 54.2% from the year-ago quarter’s levels.
Moreover, the solid performance of Emerging Brands is likely to have benefitted the company in the fourth quarter. The Zacks Consensus Estimate for revenues from Emerging Brands is pegged at $188 million, indicating growth of 21.3% on a year-over-year basis.
Reduced customer ordering, supply chain challenges and other pandemic-related disruptions are likely to have exerted pressure on the company’s performance in the fourth quarter. This along with the dismal performance of Franchise Brands and Partner Brands is likely to have affected the company’s results in the to-be-reported quarter. The Zacks Consensus Estimate for Franchise Brands and Partner Brands is pegged at $698 million and $344 million, suggesting a decline of 1% and 1.7%, respectively, on a year-over-year basis.
Increased expenses (related to future game developments and support of new game launches) coupled with a rise in freight costs and digital gaming depreciation is likely to have hurt margins in the to-be-reported quarter.
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.
Earnings ESP: Hasbro has an Earnings ESP of +2.50%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #2. 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 sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat:
Oxford Industries, Inc. (OXM - Free Report) has an Earnings ESP of +2.97% and a Zacks Rank #1.
Shares of Oxford Industries have gained 28.4% in the past year. OXM’s earnings topped the consensus mark thrice but missed the same on one occasion, the average surprise being 96.7%.
PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +42.71% and a Zacks Rank #2.
Shares of PlayAGS have gained 34.3% in the past year. AGS’ earnings topped the consensus mark thrice but missed the same on one occasion, the average surprise being 33.3%.
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank #3.
Shares of Boyd Gaming have gained 25.4% in the past year. BYD’s earnings topped the consensus mark in all of the trailing four quarters, the average surprise being 56.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.