Uncovering Potential: Hasbro's Earnings Preview

Hasbro HAS will release its quarterly earnings report on Thursday, 2024-10-24. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Hasbro to report an earnings per share (EPS) of $1.30.

The announcement from Hasbro is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.44, leading to a 3.79% increase in the share price on the subsequent day.

Here's a look at Hasbro's past performance and the resulting price change:

Stock Performance

Shares of Hasbro were trading at $71.04 as of October 22. Over the last 52-week period, shares are up 45.61%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Hasbro

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Hasbro.

The consensus rating for Hasbro is Buy, derived from 8 analyst ratings. An average one-year price target of $81.0 implies a potential 14.02% upside.

Comparing Ratings with Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Mattel, Brunswick and Polaris, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• As per analysts' assessments, Mattel is favoring an Neutral trajectory, with an average 1-year price target of $21.5, suggesting a potential 69.74% downside.
• The consensus outlook from analysts is an Buy trajectory for Brunswick, with an average 1-year price target of $92.71, indicating a potential 30.5% upside.
• The consensus among analysts is an Outperform trajectory for Polaris, with an average 1-year price target of $83.67, indicating a potential 17.78% upside.

Insights: Peer Analysis

In the peer analysis summary, key metrics for Mattel, Brunswick and Polaris are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Hasbro ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Discovering Hasbro: A Closer Look

Hasbro is a branded play company providing children and families around the world with entertainment offerings based on a world-class brand portfolio. From toys and games to television programming, motion pictures, and a licensing program, Hasbro reaches customers by leveraging its well-known brands such as Transformers, Nerf, and Magic: The Gathering. Ownership stakes in Discovery Family, which offers programming around Hasbro brands, and production capabilities has helped bolster Hasbro's multichannel presence. The firm acquired EOne in 2019, bolting on popular family properties like Peppa Pig and PJ Masks, and since has pruned noncore lines from the tie-up. Furthermore, the addition of Dungeons & Dragons Beyond in 2022, offers the firm access to 18 million digital tabletop players.

A Deep Dive into Hasbro's Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Negative Revenue Trend: Examining Hasbro's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -17.74% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 13.92%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Hasbro's ROE stands out, surpassing industry averages. With an impressive ROE of 12.84%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Hasbro's ROA stands out, surpassing industry averages. With an impressive ROA of 2.12%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Hasbro's debt-to-equity ratio stands notably higher than the industry average, reaching 3.47. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Hasbro visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.