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Hasbro Gears Up for Q1 Earnings: What's in Store for the Stock?
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Key Takeaways
Hasbro expects Q1 revenue growth but forecasts a 6.7% year-over-year earnings decline.
HAS sales likely driven by Wizards segment, with MAGIC and digital gaming boosting engagement and demand.
Higher royalties, tariffs and marketing spend may pressure margins despite rising revenues.
Hasbro, Inc. (HAS - Free Report) is expected to report a year-over-year increase in top line but a decline in earnings when it announces first-quarter 2026 results.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 52.53%.
How Are Estimates Placed?
The Zacks Consensus Estimate for earnings is pegged at 97 cents per share, indicating a 6.7% decrease from the $1.04 reported a year ago. For revenues, the Zacks Consensus Estimate is pinned at $909.13 million, implying a 2.5% increase from the prior-year quarter’s reported figure.
Let us delve deeper.
Factors to Note Ahead of HAS’ Q1 Results
Hasbro’s top line in first-quarter 2026 is likely to have been driven by continued strength in its Wizards of the Coast segment. The MAGIC franchise remains a key growth engine, supported by a growing player base, higher engagement levels and broader distribution across retail and hobby channels. A steady cadence of new releases, including premium sets and high-profile collaborations, is likely to have boosted sales volumes. The stickiness of both core and casual players, along with strong backlist demand, might have further supported revenue growth.
Additionally, the Consumer Products segment is expected to have benefited from improved entertainment slate and strong licensing partnerships. Product launches tied to major franchises and films are likely to have supported sell-through, while the company’s focus on gaming, collectibles and multi-generational brands might have enhanced demand. Stable contributions from digital gaming, including recurring revenue streams from mobile titles, are also likely to have supported overall revenues.
Our model predicts that total Wizards of the Coast & Digital Gaming revenues are likely to increase 14% year over year to $526.8 million.
However, the bottom line in first-quarter 2026 is likely to have faced pressure from multiple cost headwinds. Higher royalty expenses tied to licensed products and entertainment partnerships might have weighed on margins. At the same time, increased tariff-related costs are expected to have raised input expenses despite ongoing supply-chain efficiencies. Elevated spending on marketing, product development and upcoming game launches might have further limited profit growth, resulting in margin pressure even as revenues improved.
Our model predicts that total costs and expenses are likely to increase 1.1% year over year to $724.6 million.
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 +6.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
HAS’ Zacks Rank: The company has 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.
Choice Hotels is expected to register a 2.2% decrease in earnings for the to-be-reported quarter. CHH reported better-than-expected earnings in two of the trailing four quarters and missed on two occasions, the average miss being 0.7%.
Hilton Worldwide, Inc. (HLT - Free Report) currently has an Earnings ESP of +4.88% and a Zacks Rank of 3.
HLT’s earnings for the to-be-reported quarter are expected to increase 13.4%. Hilton reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 5.7%.
Marriott International, Inc. (MAR - Free Report) currently has an Earnings ESP of +4.03% and a Zacks Rank of 3.
MAR’s earnings for the to-be-reported quarter are expected to increase 11.6%. Marriott reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 0.7%.
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Hasbro Gears Up for Q1 Earnings: What's in Store for the Stock?
Key Takeaways
Hasbro, Inc. (HAS - Free Report) is expected to report a year-over-year increase in top line but a decline in earnings when it announces first-quarter 2026 results.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 52.53%.
How Are Estimates Placed?
The Zacks Consensus Estimate for earnings is pegged at 97 cents per share, indicating a 6.7% decrease from the $1.04 reported a year ago. For revenues, the Zacks Consensus Estimate is pinned at $909.13 million, implying a 2.5% increase from the prior-year quarter’s reported figure.
Let us delve deeper.
Factors to Note Ahead of HAS’ Q1 Results
Hasbro’s top line in first-quarter 2026 is likely to have been driven by continued strength in its Wizards of the Coast segment. The MAGIC franchise remains a key growth engine, supported by a growing player base, higher engagement levels and broader distribution across retail and hobby channels. A steady cadence of new releases, including premium sets and high-profile collaborations, is likely to have boosted sales volumes. The stickiness of both core and casual players, along with strong backlist demand, might have further supported revenue growth.
Additionally, the Consumer Products segment is expected to have benefited from improved entertainment slate and strong licensing partnerships. Product launches tied to major franchises and films are likely to have supported sell-through, while the company’s focus on gaming, collectibles and multi-generational brands might have enhanced demand. Stable contributions from digital gaming, including recurring revenue streams from mobile titles, are also likely to have supported overall revenues.
Our model predicts that total Wizards of the Coast & Digital Gaming revenues are likely to increase 14% year over year to $526.8 million.
However, the bottom line in first-quarter 2026 is likely to have faced pressure from multiple cost headwinds. Higher royalty expenses tied to licensed products and entertainment partnerships might have weighed on margins. At the same time, increased tariff-related costs are expected to have raised input expenses despite ongoing supply-chain efficiencies. Elevated spending on marketing, product development and upcoming game launches might have further limited profit growth, resulting in margin pressure even as revenues improved.
Our model predicts that total costs and expenses are likely to increase 1.1% year over year to $724.6 million.
Hasbro, Inc. Price and EPS Surprise
Hasbro, Inc. price-eps-surprise | Hasbro, Inc. Quote
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 +6.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
HAS’ Zacks Rank: The company has 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.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +3.89% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Choice Hotels is expected to register a 2.2% decrease in earnings for the to-be-reported quarter. CHH reported better-than-expected earnings in two of the trailing four quarters and missed on two occasions, the average miss being 0.7%.
Hilton Worldwide, Inc. (HLT - Free Report) currently has an Earnings ESP of +4.88% and a Zacks Rank of 3.
HLT’s earnings for the to-be-reported quarter are expected to increase 13.4%. Hilton reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 5.7%.
Marriott International, Inc. (MAR - Free Report) currently has an Earnings ESP of +4.03% and a Zacks Rank of 3.
MAR’s earnings for the to-be-reported quarter are expected to increase 11.6%. Marriott reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 0.7%.