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HAS Q2 Earnings on Deck: Will Consumer Product Drag Its Results?
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Key Takeaways
Hasbro is expected to report Q2 earnings of $0.78 per share, suggesting 36.1% y/y decline.
Revenues are forecast at $873M, with a 23.6% drop in Consumer Products dragging the overall performance.
Tariff exposure, higher logistics costs and royalty fees are likely to have pressured HAS margins in Q2.
Hasbro, Inc. (HAS - Free Report) is scheduled to report second-quarter fiscal 2025 results on July 23, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 55.2%.
How Are Estimates Placed?
The Zacks Consensus Estimate for earnings is pegged at 78 cents per share, indicating a decline of 36.1% from the $1.22 reported a year ago. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
For revenues, the consensus estimate is pegged at $873 million, implying a decline of 12.3% from the prior-year quarter’s reported figure.
Let us delve deeper.
Factors to Note Ahead of HAS’ Q2 Results
Hasbro’s fiscal second-quarter top line is likely to have been weighed down by a combination of macroeconomic uncertainty and tariff-related disruptions, particularly within its Consumer Products segment. While demand remained stable for brands like MAGIC and Monopoly Go!, Hasbro anticipates a slowdown in direct import activity, which might have dampened revenue growth in the quarter. Additionally, ongoing SKU rationalization and strategic portfolio trimming are likely to have constrained top-line upside.
Our model predicts total Consumer Products revenues to decline 23.6% year over year to $400.9 million. On the other hand, total Wizards of the Coast & Digital Gaming and Entertainment revenues are likely to increase 2.1% and 1%, respectively, year over year to $461.4 million and $19 million.
Hasbro has been witnessing strong gaming demand. The company boasts a comprehensive gaming portfolio and is refining gaming experiences across multiple platforms, including face-to-face gaming, tabletop gaming and digital gaming on mobile.
On the bottom line, Hasbro has faced mounting margin pressure from rising input costs tied to tariff exposure and supply-chain shifts. The company expects an estimated gross impact of $100 million to $300 million for the year from tariffs, with $60 million to $180 million potentially hitting net profits even after mitigation efforts. To offset these pressures, Hasbro has accelerated cost-saving initiatives and optimized sourcing, but near-term expenses related to logistics, manufacturing diversification and royalty increases in its Wizards segment are likely to have compressed operating margins in second-quarter 2025.
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. This is not the case here.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Hasbro currently has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks Poised to Beat Earnings
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.
For the to-be-reported quarter, MGM Resorts’ earnings are expected to register a 36.1% decline. MGM Resorts’ earnings beat the consensus estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 25.5%.
Boyd Gaming Corporation (BYD - Free Report) currently has an Earnings ESP of +0.81% and a Zacks Rank of 3.
For the to-be-reported quarter, Boyd Gaming’s earnings are expected to increase 5.1%. Boyd Gaming’s earnings beat the consensus estimates in each of the trailing four quarters, the average surprise being 8%.
PENN Entertainment, Inc. (PENN - Free Report) presently has an Earnings ESP of +26.91% and a Zacks Rank of 3.
For the to-be-reported quarter, PENN Entertainment’s earnings are expected to increase 61.1%. PENN Entertainment’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 13.5%.
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HAS Q2 Earnings on Deck: Will Consumer Product Drag Its Results?
Key Takeaways
Hasbro, Inc. (HAS - Free Report) is scheduled to report second-quarter fiscal 2025 results on July 23, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 55.2%.
How Are Estimates Placed?
The Zacks Consensus Estimate for earnings is pegged at 78 cents per share, indicating a decline of 36.1% from the $1.22 reported a year ago. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
For revenues, the consensus estimate is pegged at $873 million, implying a decline of 12.3% from the prior-year quarter’s reported figure.
Let us delve deeper.
Factors to Note Ahead of HAS’ Q2 Results
Hasbro’s fiscal second-quarter top line is likely to have been weighed down by a combination of macroeconomic uncertainty and tariff-related disruptions, particularly within its Consumer Products segment. While demand remained stable for brands like MAGIC and Monopoly Go!, Hasbro anticipates a slowdown in direct import activity, which might have dampened revenue growth in the quarter. Additionally, ongoing SKU rationalization and strategic portfolio trimming are likely to have constrained top-line upside.
Our model predicts total Consumer Products revenues to decline 23.6% year over year to $400.9 million. On the other hand, total Wizards of the Coast & Digital Gaming and Entertainment revenues are likely to increase 2.1% and 1%, respectively, year over year to $461.4 million and $19 million.
Hasbro has been witnessing strong gaming demand. The company boasts a comprehensive gaming portfolio and is refining gaming experiences across multiple platforms, including face-to-face gaming, tabletop gaming and digital gaming on mobile.
On the bottom line, Hasbro has faced mounting margin pressure from rising input costs tied to tariff exposure and supply-chain shifts. The company expects an estimated gross impact of $100 million to $300 million for the year from tariffs, with $60 million to $180 million potentially hitting net profits even after mitigation efforts. To offset these pressures, Hasbro has accelerated cost-saving initiatives and optimized sourcing, but near-term expenses related to logistics, manufacturing diversification and royalty increases in its Wizards segment are likely to have compressed operating margins in second-quarter 2025.
Hasbro, Inc. Price and EPS Surprise
Hasbro, Inc. price-eps-surprise | Hasbro, Inc. Quote
What the Zacks Model Unveils for HAS
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. This is not the case here.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Hasbro currently has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks Poised to Beat Earnings
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.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +2.45% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
For the to-be-reported quarter, MGM Resorts’ earnings are expected to register a 36.1% decline. MGM Resorts’ earnings beat the consensus estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 25.5%.
Boyd Gaming Corporation (BYD - Free Report) currently has an Earnings ESP of +0.81% and a Zacks Rank of 3.
For the to-be-reported quarter, Boyd Gaming’s earnings are expected to increase 5.1%. Boyd Gaming’s earnings beat the consensus estimates in each of the trailing four quarters, the average surprise being 8%.
PENN Entertainment, Inc. (PENN - Free Report) presently has an Earnings ESP of +26.91% and a Zacks Rank of 3.
For the to-be-reported quarter, PENN Entertainment’s earnings are expected to increase 61.1%. PENN Entertainment’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 13.5%.