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Factors Setting the Tone for Hasbro's (HAS) Q3 Earnings

Zacks Equity Research
·3 min read

Hasbro, Inc. HAS is scheduled to report third-quarter 2020 results on Oct 26, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 89.5%.

Q3 Estimates

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.65 per share, suggesting a decline of 10.3% from $1.84 reported in the prior-year quarter. Notably, the consensus mark for third-quarter earnings have been revised upward by 2.5% in the past 30 days. The Zacks Consensus Estimate for revenues is pegged at $1.77 billion, indicating growth of 12.4% from the year-ago figure.

Factors to Note

Hasbro’s third-quarter results are likely to reflect robust performance of Franchise Brands, Hasbro Gaming and Emerging Brands. The company has been witnessing strong gaming demand amid the coronavirus pandemic. Hasbro has a supreme gaming portfolio, and it has been refining gaming experiences across a multitude of platforms including face-to-face gaming, off-the-board gaming and digital gaming experiences in mobile. Given greater focus on entertainment backed products, Hasbro’s Entertainment and Licensing segment is likely to have witnessed growth in the quarter to be reported.

The Zacks Consensus Estimate for Franchise Brands, Hasbro Gaming and Emerging Brands are pegged at $811 million, $260 million and $158 million, suggesting year-over-year growth of 4%, 12.1% and 16.2%, respectively. Emerging markets, which offer greater opportunities for revenue growth than developed markets, have been contributing significantly to Hasbro’s revenues. However, the consensus mark for Partners Brands revenues are pegged at $345 million, suggesting a decline of 19.2% year over year.

Temporary store closures, dismal international sales, product shortages, lower retail inventories, supply chain disruption, live-action production shutdowns, and changing theatrical release schedules owing to the coronavirus pandemic might have weighed on the to-be-reported quarter’s performance.

Hasbro, Inc. Price and EPS Surprise

Hasbro, Inc. Price and EPS Surprise
Hasbro, Inc. Price and EPS Surprise

Hasbro, Inc. price-eps-surprise | Hasbro, Inc. Quote

What the Zacks Model Unveils

Our proven model conclusively predicts 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 has a Zacks Rank #3 and an Earnings ESP of +3.44%.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:

Camping World Holdings, Inc. CWH has a Zacks Rank #1 and an Earnings ESP of +34.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Brunswick Corporation BC has a Zacks Rank #2 and an Earnings ESP of +2.75%.

Activision Blizzard, Inc. ATVI has a Zacks Rank #2 and an Earnings ESP of +2.20%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
Hasbro, Inc. (HAS) : Free Stock Analysis Report
Camping World Holdings Inc. (CWH) : Free Stock Analysis Report
Brunswick Corporation (BC) : Free Stock Analysis Report
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