Is It Time To Buy Hasbro?
Photo Credit: JD Hancock
Hasbro, Inc. (HAS) Consumer Discretionary - Leisure Equipment & Products | Reports October 17, Before Market Open
Key Takeaways
- The Estimize consensus is calling for earnings per share of $1.75 on $1.58 billion in revenue, 1 cent higher than Wall Street on the bottom line and right in line on the top
- Hasbro could see tepid results without the release of any movie themed toys this quarter
- The premiere of new Frozen and Star Wars movies could push Hasbro to raise guidance for the fourth quarter
- What are your thoughts on HAS? Click here to estimate!
Toy maker, Hasbro, is scheduled to announce third quarter results this Monday, before the market opens. Hasbro is coming off a string of strong reports thanks to the booming success of its movie themed toys. Star Wars, Captain America and Frozen themed toys have been the strongest contributors to revenue over this time. This quarter expectations are tepid given the lack of blockbuster movies this quarter and the loss of the Jurassic Park license.
Analysts at Estimize are calling for earnings per share of $1.75, roughly 5% higher than the same period last year. That estimate is currently 1 cent higher than Wall Street, which historically underestimates its EPS estimate on Hasbro. Revenue for the period is anticipated 7% higher to $1.58 billion, marking a significant decline from the previous three quarters. Historically shares jump 2% immediately following a report but given how results have been trending it’s more likely that shares drop Monday morning. Shares are down 11% in the past 3 months but up about 14% year to date.
Hasbro’s recent string of success can be credited to movie themed toys specifically those based on Star Wars and Captain America. Those movies have come and gone and now Hasbro is waiting for the next blockbuster success. In all likelihood that will be the next Frozen or Star Wars movies expected to debut at the end of the year.
Frozen toys will help propel the girl’s segment which has recently seen a marked turnaround. In the past, the boy’s segment and movie related toys were expected to offset the losses posted in the girl’s segment. It was only until this year that the girl’s segment has begun to hold it own. That doesn’t mean all of its girl brands are performing well. Furby and My Little Pony are consistently posting weak growth and should put a dent in the upcoming quarter’s results.
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