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Hasbro to Post Q4 Earnings: What's in the Cards for the Stock?

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Hasbro, Inc. (HAS - Free Report) is scheduled to report fourth-quarter fiscal 2024 results on Feb. 20, 2025, before the opening bell.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

In the last quarter, the company reported adjusted earnings per share (EPS) of $1.73, which beat the Zacks Consensus Estimate of $1.31 by 32.1%. The bottom line improved 5.5% year over year.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, delivering an average surprise of 44%.

Trend in Estimate Revision of HAS

Hasbro, Inc. Price and EPS Surprise

Hasbro, Inc. Price and EPS Surprise

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

The Zacks Consensus Estimate for fiscal fourth-quarter EPS has increased to 36 cents from 35 cents in the past 30 days. The expected figure indicates a fall of 5.3% from the year-ago quarter’s figure of 38 cents per share.

The consensus mark for revenues is pegged at $1 billion. The metric suggests a deterioration of 20.4% from the year-ago quarter’s figure.

Factors Likely to Shape HAS’ Quarterly Results

Hasbro’s fourth-quarter fiscal 2024 performance is likely to have benefited from strategic investments in innovation, a focus on strategic collaborations and sales-boosting initiatives. This, and strength in Gaming and Licensing are likely to have aided the company’s performance in the to-be-reported quarter.

Licensing remains a strong performer for Hasbro, with Monopoly Go! stabilizing at approximately $10 million in monthly licensing revenues. Scopely, the game's development partner, continues to introduce innovative features, including third-party content from Marvel and the Tycoon Club loyalty program aimed at enhancing player engagement. The initiatives are likely to have driven user acquisition and retention in the fiscal fourth quarter. The company expects Monopoly Go! to contribute roughly $105 million in revenues in fiscal 2024.

The Consumer Products segment is likely to have remained under pressure due to weakness in action figures, particularly Star Wars, and reduced closeout sales. Our model predicts revenues from Consumer Products to fall 2.6% year over year to $734.3 million. The company expects the segmental revenues to fall in the range of 12% to 14% in fiscal 2024.

Soft contributions from Total Wizards Of The Coast & Digital Gaming segment and Entertainment segment are likely to be reflected in the company’s fiscal fourth quarter top line. Our model predicts revenues from Total Wizards Of The Coast & Digital Gaming segment and Entertainment segment to fall 21.4% and 89.5% year over year to $285.3 million and $18.1 million, respectively.

Higher royalty expenses from brands like Beyblade and Transformers, coupled with increased marketing investments during the holiday season, are likely to have negatively impacted the company’s profitability in the fiscal fourth quarter.

What Our Model Says About HAS Stock

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.

HAS’ Earnings ESP: Hasbro has an Earnings ESP of +9.20%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

HAS’ Zacks Rank: The company carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks With the Favorable Combination

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 deliver an earnings beat this time around.

Life Time Group Holdings, Inc. (LTH - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank of 1 at present.

LTH is expected to register a 10.5% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 46.2%.

Amer Sports, Inc. (AS - Free Report) currently has an Earnings ESP of +6.56% and a Zacks Rank of 2.

AS reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 120.4%. Its earnings for the to-be-reported quarter are expected to increase 254.6%.

Planet Fitness, Inc. (PLNT - Free Report) currently has an Earnings ESP of +0.55% and a Zacks Rank of 3.

PLNT reported better-than-expected earnings in each of the trailing four quarters, delivering an average surprise of 7.8%. Its earnings for the to-be-reported quarter are expected to increase 3.3%.

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