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Headquartered in Pawtucket, Rhode Island, Hasbro, Inc. (HAS) designs, manufactures, and markets games and toys. Valued at a market cap of $7.7 billion, the company offers traditional, high-tech and digital toys, games and licensed products under various well-known brands. It is scheduled to announce its fiscal Q1 earnings for 2025 before the market opens on Thursday, Apr. 24.
Prior to this event, analysts project this toy company to report a profit of $0.70 per share, up 14.8% from $0.61 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the last four quarters. Its earnings of $0.46 per share in the previous quarter outpaced the consensus estimates by a notable 21.1%.
For the full year, analysts expect HAS to report EPS of $4.18, up 4.2% from $4.01 in fiscal 2024. Its EPS is expected to further grow 12% year over year to $4.68 in fiscal 2026.
Hasbro has declined nearly 3.8% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 4.7% rise, and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 7.8% gain over the same time frame.
On Feb. 20, shares of HAS skyrocketed 13% after its better-than-expected Q4 earnings release. While its revenue declined 14.5% year-over-year to $1.1 billion, primarily due to eOne divestiture and lower wizards of the coast and digital gaming segment revenue, it exceeded Wall Street’s expectations by 6.8%. Adding to the uptick, its total costs and expenses declined 58.1% from the year-ago quarter and led to a strong rise in its operating profit to $59.8 million. Moreover, its adjusted EPS of $0.46 outpaced the consensus estimates and grew 21.1% year-over-year.
Wall Street analysts are moderately optimistic about Hasbro’s stock, with a "Moderate Buy" rating overall. Among 10 analysts covering the stock, six recommend "Strong Buy," one suggests a “Moderate Buy,” and three advise “Hold.” The mean price target for HAS is $76.70, which indicates a 39% potential upside from the current levels.
