Hasbro Earnings: What To Look For From HAS

Hasbro Earnings: What To Look For From HAS

Toy and entertainment company Hasbro (NASDAQ:HAS) will be reporting results tomorrow before market hours. Here's what investors should know.

Hasbro beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $757.3 million, down 24.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and a decent beat of analysts' Entertainment revenue estimates.

Is Hasbro a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Hasbro's revenue to decline 22% year on year to $943.4 million, a further deceleration from the 9.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.76 per share.

Hasbro Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hasbro has missed Wall Street's revenue estimates four times over the last two years.

Looking at Hasbro's peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mattel posted flat year-on-year revenue, missing analysts' expectations by 1.8%, and Carnival reported revenues up 17.7%, topping estimates by 1.9%. Carnival traded up 12% following the results.

Read our full analysis of Mattel's results here and Carnival's results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 9.8% on average over the last month. Hasbro's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $72.6 (compared to the current share price of $58.95).

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