Hasbro Earnings Preview

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Hasbro (NAS: HAS) came in under analyst's estimates last quarter, but now have a chance to fix things this quarter. The company will unveil its latest earnings today. Hasbro is a global company that designs, manufactures, and markets games and toys to children and families.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Hasbro, with nine of 13 rating it a buy and the remainder rating it a hold. Analysts like Hasbro better than competitor Bally Technologies overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $1.45 billion in revenue this quarter. That would represent a rise of 10.7% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $1.30 per share. Estimates range from $1.23 to $1.37.

What our community says:
CAPS All-Stars are solidly backing the stock with 98.1% granting it an outperform rating. The community at large agrees with the All-Stars with 97.2% awarding it a rating of outperform. Fools are keen on Hasbro and haven't been shy with their opinions lately, logging 458 posts in the past 30 days. Hasbro has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Hasbro's income has fallen year over year by an average of 12.5% over the past five quarters. A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue rose 23.1% in the second quarter and fell 0.1% in the first quarter and 7% in the fourth quarter of the last fiscal year.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

49.3%

53.8%

50.6%

48.8%

Operating Margin

8.9%

7.3%

15.7%

18.1%

Net Margin

6.4%

2.6%

10.9%

11.8%

For all our Hasbro-specific analysis, including earnings and beyond, add Hasbro to My Watchlist.

Motley Fool newsletter services have recommended buying shares of Hasbro.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

At the time this article was published

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