Hasbro Meets on the Top Line, Misses Where It Counts

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Hasbro (NAS: HAS) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 25 (Q4), Hasbro met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew.

Gross margins dropped, operating margins grew, net margins contracted.

Revenue details
Hasbro logged revenue of $1.33 billion. The analysts polled by S&P Capital IQ expected revenue of $1.34 billion. Sales were 4.0% higher than the prior-year quarter's $1.28 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1.06. The earnings estimates compiled by S&P Capital IQ forecast $1.08 per share. GAAP EPS of $1.06 for Q4 were 7.1% higher than the prior-year quarter's $0.99 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.3%, 430 basis points worse than the prior-year quarter. Operating margin was 16.3%, 60 basis points better than the prior-year quarter. Net margin was 10.5%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $703.9 million. On the bottom line, the average EPS estimate is $0.17.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,920 members out of 1,982 rating the stock outperform, and 62 members rating it underperform. Among 628 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 616 give Hasbro a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hasbro is outperform, with an average price target of $42.36.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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