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Hasbro (HAS) to Report Q4 Earnings: What's in the Cards?
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Hasbro, Inc. (HAS - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Feb 13, 2024, before the opening bell. In the last reported quarter, the company’s earnings matched the Zacks Consensus Estimate of $1.64.
What Do the Estimates Say?
The Zacks Consensus Estimate for fiscal fourth-quarter earnings per share is pegged at 64 cents, indicating a deterioration of 51.2% from $1.31 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1.37 million, suggesting a decline of 18.2% from the year-ago quarter’s figure.
Let’s analyze the factors that are likely to make an impact this earnings season.
Factors to Note
Hasbro’s fiscal fourth-quarter top line is likely to have reflected tepid performances of the Consumer Products and Entertainment segments. A decrease in toy and game volume, and unfavorable pricing and mix remain headwinds. Furthermore, strikes by notable writers and actors related to the Entertainment segment are likely to have added to the downside.
Per our model, fiscal fourth-quarter total consumer product revenues are expected to decline 17.8% year over year to $826.1 million. Total entertainment revenues are expected to decrease 44.9% year over year to $184.6 million.
For fiscal 2023, the company expects revenues to decline 13-15% year over year. Segment-wise, it envisions revenues in Consumer Products to record a year-over-year decrease (at constant currency) in the mid-to-high teens.
The adjusted operating margin for fiscal 2023 is expected to be in the range of 13-13.5%. The forecast takes into account the effects of decreased revenues in the Consumer Products segment, along with extra expenses incurred to address aging inventory on Hasbro's financial records. The metric was 15.8% in the prior year. Adjusted EBITDA is suggested in the range of $900-$950 million. In fiscal 2022, the metric was $1.17 billion.
Emphasis on the adoption of a franchise-led and asset-light approach (for entertainment), strategic partnerships and streamlining of the supply chain are likely to have aided the company’s performance in the fiscal fourth quarter.
Focus on new product launches and strengthening of Wizards and Digital business (backed by the solid performance of MAGIC) are likely to have aided the company’s top-line performance in the to-be-reported quarter. Our model predicts fiscal fourth-quarter Wizards Of The Coast & Digital Gaming revenues to rise 3.1% year over year to $350.1 million.
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 +3.75%. 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 at present.
Other Stocks Poised to Beat on Earnings
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.
SIX is expected to register a 15.6% decrease in earnings for the to-be-reported quarter. It reported better-than-expected earnings in one of the trailing four quarters and missed on the other three occasions, the average being negative 9.3%.
Hyatt Hotels Corporation (H - Free Report) currently has an Earnings ESP of +2.67% and a Zacks Rank of 3.
H’s earnings for the to-be-reported quarter are expected to decrease 85.1%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, the average surprise being 174.9%.
Choice Hotels International, Inc. (CHH - Free Report) currently has an Earnings ESP of +1.48% and a Zacks Rank of 3.
CHH’s earnings for the to-be-reported quarter are expected to increase 7.1%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 5.2%.
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Hasbro (HAS) to Report Q4 Earnings: What's in the Cards?
Hasbro, Inc. (HAS - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Feb 13, 2024, before the opening bell. In the last reported quarter, the company’s earnings matched the Zacks Consensus Estimate of $1.64.
What Do the Estimates Say?
The Zacks Consensus Estimate for fiscal fourth-quarter earnings per share is pegged at 64 cents, indicating a deterioration of 51.2% from $1.31 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1.37 million, suggesting a decline of 18.2% from the year-ago 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 fiscal fourth-quarter top line is likely to have reflected tepid performances of the Consumer Products and Entertainment segments. A decrease in toy and game volume, and unfavorable pricing and mix remain headwinds. Furthermore, strikes by notable writers and actors related to the Entertainment segment are likely to have added to the downside.
Per our model, fiscal fourth-quarter total consumer product revenues are expected to decline 17.8% year over year to $826.1 million. Total entertainment revenues are expected to decrease 44.9% year over year to $184.6 million.
For fiscal 2023, the company expects revenues to decline 13-15% year over year. Segment-wise, it envisions revenues in Consumer Products to record a year-over-year decrease (at constant currency) in the mid-to-high teens.
The adjusted operating margin for fiscal 2023 is expected to be in the range of 13-13.5%. The forecast takes into account the effects of decreased revenues in the Consumer Products segment, along with extra expenses incurred to address aging inventory on Hasbro's financial records. The metric was 15.8% in the prior year. Adjusted EBITDA is suggested in the range of $900-$950 million. In fiscal 2022, the metric was $1.17 billion.
Emphasis on the adoption of a franchise-led and asset-light approach (for entertainment), strategic partnerships and streamlining of the supply chain are likely to have aided the company’s performance in the fiscal fourth quarter.
Focus on new product launches and strengthening of Wizards and Digital business (backed by the solid performance of MAGIC) are likely to have aided the company’s top-line performance in the to-be-reported quarter. Our model predicts fiscal fourth-quarter Wizards Of The Coast & Digital Gaming revenues to rise 3.1% year over year to $350.1 million.
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 +3.75%. 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 at present.
Other Stocks Poised to Beat on Earnings
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.
Six Flags Entertainment Corporation (SIX - Free Report) has an Earnings ESP of +21.85% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SIX is expected to register a 15.6% decrease in earnings for the to-be-reported quarter. It reported better-than-expected earnings in one of the trailing four quarters and missed on the other three occasions, the average being negative 9.3%.
Hyatt Hotels Corporation (H - Free Report) currently has an Earnings ESP of +2.67% and a Zacks Rank of 3.
H’s earnings for the to-be-reported quarter are expected to decrease 85.1%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, the average surprise being 174.9%.
Choice Hotels International, Inc. (CHH - Free Report) currently has an Earnings ESP of +1.48% and a Zacks Rank of 3.
CHH’s earnings for the to-be-reported quarter are expected to increase 7.1%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 5.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.