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Barchart
Barchart
Kritika Sarmah

Here's What to Expect From Hasbro’s Next Earnings Report

Hasbro, Inc. (HAS), commanding market capitalization of $7.8 billion, stands as a global powerhouse in toy and entertainment production, celebrated for its legendary brands such as Monopoly, Nerf, My Little Pony, and Transformers. The Pawtucket, Rhode Island-based company is ready to release its fiscal Q4 earnings before the market opens on Tuesday, Feb. 11.

Ahead of the event, analysts expect HAS to report a profit of $35 per share, down 7.9% from $0.38 in the year-ago quarter. In the last four quarters, the company has surpassed or matched Wall Street’s bottom-line estimates in three quarters and missed on another one occasion. Despite a drop in revenue in the previous quarter, cost management and operational efficiency enabled the company to report an adjusted EPS of $1.73, exceeding the earnings expectations by 32.1%

For fiscal 2024, analysts expect HAS to report EPS of $3.86, up 53.8% from $2.51 in fiscal 2023

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Shares of HAS have soared 22.6% over the past year, trailing the S&P 500’s ($SPX24.6% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 30.1% returns over the same time frame.

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Over the past year, Hasbro has underperformed the broader market due to declining revenue, negative operating margins, and a decreasing return on invested capital, all pointing to weak demand, profitability challenges, and limited growth opportunities.

The situation worsened after the company posted its Q3 earnings report on Oct. 24, when shares dropped 6%. With a revenue of $1.28 billion, down 14.8% from the previous year, Hasbro's disappointing performance stemmed from declines across all its operating segments.

The consensus opinion on HAS stock is reasonably bullish, with an overall “Moderate Buy” rating. Out of 11 analysts covering the stock, seven advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and three recommend a “Hold.” 

HAS' average analyst price target is $76.55, indicating a potential upside of 32.6% from the current levels.

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