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Factors Setting the Tone for Hasbro's (HAS) Q1 Earnings

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Hasbro, Inc. (HAS - Free Report) is scheduled to report first-quarter 2022 results on Apr 19, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 36%.

How Are Estimates Placed?

The Zacks Consensus Estimate for first-quarter earnings is pegged at 68 cents per share, indicating a decline of 32% from $1 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $1,143 million, suggesting an increase of 2.6% from the prior-year quarter’s figure.

Hasbro, Inc. Price and EPS Surprise

 

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 first-quarter top line is likely to have benefited from the expansion of Tabletop gaming, digital gaming offerings (backed by Magic: The Gathering Arena's launch and Wizards brands) and multigenerational fan engagement initiatives. Emphasis on the creation of omni-media play and entertainment coupled with digital and direct-to-consumer business investments is likely to have driven the company’s performance in the first quarter.

During the quarter, the company’s Entertainment segment is likely to have benefitted from opportunities arising from viewership and merchandise. New theatrical launches and streaming content add-ons are likely to have boosted revenues in the to-be-reported quarter. For the first quarter, the Zacks Consensus Estimate for Entertainment revenues is pegged at $209 million, indicating growth of 7.6% year over year. The company’s first-quarter numbers are likely to reflect robust performance of Franchise Brands. The Zacks Consensus Estimate for Franchise Brands is pegged at $528 million, indicating growth of 7.3% on a year-over-year basis.

However, reduced customer orders, supply chain delays and other pandemic-related disruptions are likely to have weighed on the first quarter performance. This along with product development expenses as well as a rise in freight costs 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 +0.24%. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

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

Pool Corporation (POOL - Free Report) has an Earnings ESP of +7.07% and a Zacks Rank #2.

Shares of Pool Corp have gained 14.6% in the past year. POOL’s earnings beat the consensus mark in all of the trailing four quarters, the average surprise being 38.4%.

OneWater Marine Inc. (ONEW - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #2.

Shares of OneWater have declined 25.8% in the past year. ONEW’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 59%.

Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of +3.30% and a Zacks Rank #3.

Shares of Penn National have declined 14.8% in the past three months. PENN’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 6.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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