Will Hasbro Bounce Back? Anticipation Builds for Q4 Earnings Report
Hasbro, Inc. (HAS), with a market capitalization of $7.8 billion, is a leading figure in toy and entertainment production, recognized for iconic brands like Monopoly, Nerf, My Little Pony, and Transformers. The company, headquartered in Pawtucket, Rhode Island, is set to announce its fiscal Q4 earnings before the market opens on Tuesday, Feb. 11.
Analyst Predictions Hint at Slimmed Profits
As the earnings date approaches, analysts anticipate HAS will report a profit of $0.35 per share, which marks a 7.9% decrease from $0.38 in the same quarter last year. Hasbro has either met or exceeded Wall Street expectations in three of the last four quarters, though it did miss estimates once. Despite facing a revenue decline in the previous quarter, strong cost management and operational efficiency allowed the company to post an adjusted EPS of $1.73, beating forecasts by 32.1%.
Future Outlook Shows Promise
Looking ahead to fiscal 2024, analysts project the company to achieve an EPS of $3.86, representing a significant 53.8% increase from $2.51 in fiscal 2023.
Stock Performance: A Mixed Bag
Over the past year, HAS shares have risen 22.6%, falling short compared to the S&P 500’s gains of 24.6% and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) returns of 30.1% in the same period.
Challenges Impacting Performance
Hasbro’s recent struggles have been attributed to declining revenue and weak consumer demand, leading to shrinking operating margins and a reduced return on invested capital. This trend has raised concerns among investors. The situation intensified after the company revealed its Q3 earnings on Oct. 24, resulting in a 6% drop in share price. A revenue of $1.28 billion, down 14.8% from the same period last year, was a key factor in this disappointing performance, as all operating segments experienced declines.
Analyst Sentiment and Price Targets
The consensus opinion on HAS stock is cautiously optimistic, with an overall “Moderate Buy” rating. Of the 11 analysts evaluating the stock, seven rate it as a “Strong Buy,” one suggests a “Moderate Buy,” and three recommend a “Hold.”
Currently, the average analyst price target for HAS is $76.55, indicating a potential upside of 32.6% from its existing levels.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more detailed information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are solely those of the author and do not necessarily represent those of Nasdaq, Inc.
