Hasbro (HAS) To Report Q4 Earnings: What's In The Offing?

Hasbro, Inc. (NASDAQ:HAS) is scheduled to report fourth-quarter 2019 results on Feb 11, before the opening bell. In the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 17.1% and 9%, respectively. The bottom line declined 4.7% but revenues marginally grew 0.3% on a year-over-year basis.

Trend in Estimate Revision

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 93 cents per share, which suggests a 30.1% decrease from $1.33 reported in the year-ago period. Notably, earnings estimates for the quarter have decreased 2.1% over the past 30 days. The consensus mark for revenues is pegged at $1.45 billion, which calls for a 4.6% increase from the prior-year reported figure.

Let’s discuss the factors that are likely to be reflected on the upcoming quarterly results.

Factors at Play

Hasbro’s fourth-quarter revenues are likely to have benefited from solid contribution from the Entertainment, Licensing and Digital segment. Higher shipments of entertainment properties (such as Disney Frozen, Star Wars) and contributions from Power Rangers are expected to have benefited the company during the quarter. From a geographic perspective, impressive performance in the U.S. & Canada, as well as the International segment is expected to get reflected on fourth-quarter revenues.

In terms of brand/category, solid performance from MONOPOLY, PLAY-DOH, Partner Brands and Emerging Brands is anticipated to get reflected on fourth-quarter results. Emerging markets, which offer greater opportunities for revenue growth than developed markets, have been contributing significantly to Hasbro’s revenues.

Tariffs are likely to have impacted NERF, which is Hasbro’s largest direct import brand. Apart from this, certain game properties (which are part of list 4 tariffs) are also expected to have disproportionately affected its quarterly performance.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Hasbro this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Hasbro currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -8.60%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter:

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) currently has an Earnings ESP of +11.34% and a Zacks Rank #3.

Mattel, Inc. (NASDAQ:MAT) has an Earnings ESP of +850.00% and currently carries a Zacks Rank #3.

Boyd Gaming Corporation (NYSE:BYD) has an Earnings ESP of +10.25% and a Zacks Rank #3, at present.

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