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Hasbro (HAS) to Report Q2 Earnings: What's in the Cards?

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Hasbro, Inc. (HAS - Free Report) is scheduled to report second-quarter 2022 results on Jul 19, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 14.9%.

How Are Estimates Placed?

The Zacks Consensus Estimate for second-quarter earnings is pegged at 91 cents per share, indicating a decline of 13.3% from $1.05 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $1,372 million, suggesting an increase of 3.8% 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 second-quarter top line is likely to have benefited from strong demand in the gaming business, license partnerships and entertainment offerings. This and an emphasis on multi-generational play and direct-to-consumer capabilities (including investments in Starting Lineup and D&D Beyond) are likely to have aided the company’s performance in the to-be-reported quarter. The addition of D&D Beyond to its games portfolio is likely to have boosted DUNGEONS & DRAGONS and Wizards of the Coast’s capabilities in the second quarter. The initiative is likely to have paved a path for growth vectors, including international market expansion, enhanced digital play experiences, physical digital tie-ins, direct-to-digital exclusive content and new brand partnerships.

Solid contributions from the company’s Franchise Brands and Partner Brands are likely to have aided the top line in the to-be-reported quarter. The Zacks Consensus Estimate for Franchise Brands and Partner Brands is pegged at $690 million and $216 million, indicating growth of 6.2% and 1.9%, respectively, on a year-over-year basis. However, the Zacks Consensus Estimate for Entertainment revenues is pegged at $190 million, indicating a decline of 3.1% year over year.

Product development expenses and a rise in freight costs are likely to have hurt margins in the second quarter. This and supply chain headwinds and shift of MAGIC release (to September) is likely to have affected operations in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict 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. But that's not the case here.

Earnings ESP: Hasbro has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries 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 sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:

MGM Resorts International (MGM - Free Report) has an Earnings ESP of +60.20% and a Zacks Rank #1.

Shares of MGM Resorts have declined 25.9% in the past year. MGM’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 212.5%.

Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +10.12% and a Zacks Rank #1.

Shares of Marriott have increased 0.9% in the past year. MAR’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 36.2%.

Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +13.39% and a Zacks Rank #3.

Shares of Hilton have declined 7.2% in the past year. HLT’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 20.5%.

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

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