Toy and Entertainment Company Hasbro Faces Challenging Quarter
Toy and entertainment company Hasbro is set to release its earnings report tomorrow before the market opens, and analysts are predicting a challenging quarter for the company. Last quarter, Hasbro reported revenues of $1.50 billion, a 10.3% decrease compared to the previous year. This fell short of analyst expectations by 8.7%, making it a disappointing quarter for the company. In addition, Hasbro missed both revenue and EPS estimates from analysts.
For this quarter, analysts are forecasting a further decline in Hasbro’s revenue, with a 19.2% year-on-year decrease to $1.36 billion. This represents a continuation of the downward trend, as the company recorded a 16.6% year-on-year decrease in revenue during the same quarter last year. Adjusted earnings are expected to be $0.64 per share.
Despite these anticipated challenges, the majority of analysts covering Hasbro have reconfirmed their estimates in the past month, indicating that they expect the company to stay on track heading into the earnings announcement. However, it is worth noting that Hasbro has missed Wall Street’s revenue estimates three times in the past two years.
To gain some insight into what we can expect from Hasbro’s earnings, we can look at its peers in the leisure products segment. 1-800-FLOWERS reported an 8.4% year-on-year decrease in revenues, slightly missing analyst estimates by 0.5%. On the other hand, Sonos saw a revenue decline of 8.9% year on year, but managed to exceed estimates by 4.4%. Following their earnings reports, 1-800-FLOWERS saw no significant movement in its stock price, while Sonos experienced a 15.3% increase.
Investors in the leisure products segment have generally shown positive sentiment, as the average stock prices have risen 4.5% over the past month. Hasbro has also benefited from this trend, with its stock price up 7.8% during the same time period. Analysts have set a target price of $60.5 for Hasbro, higher than its current share price of $50.7.
As Hasbro prepares to announce its earnings, investors and analysts alike are eager to see how the company performs and if it can overcome the challenges it has faced in recent quarters.
Analyst comment
Negative news. Analysts predict a challenging quarter for Hasbro with a further decline in revenue and adjusted earnings of $0.64 per share. Hasbro has previously missed revenue estimates three times. Its peers in the leisure products segment also experienced revenue declines. However, investors have shown positive sentiment and Hasbro’s stock price has been rising. Overall, uncertainty surrounds Hasbro’s performance and its ability to overcome recent challenges.
