Hasbro, Inc. HAS is scheduled to report first-quarter 2023 results on Apr 27, before market open. In the last reported quarter, the company earnings surpassed the Zacks Consensus Estimate by 0.8%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter adjusted earnings is pegged at 7 cents per share compared with adjusted earnings of 57 cents per share reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $885.5 million, suggesting a decline of 23.9% from the year-ago quarter’s reported figure.
Factors at Play
In first-quarter 2023, Hasbro’s top line is likely to have been affected by dismal performances of Franchise Brands, Partner Brands, Hasbro Gaming and Emerging Brands. All the operating segments of HAS are likely to have witnessed a downtrend in revenues. Persisting inflation and supply chain risks add to the headwinds.
Hasbro, Inc. Price and EPS Surprise
Hasbro, Inc. price-eps-surprise | Hasbro, Inc. Quote
For first-quarter 2023, our model predicts total revenues in the Franchise Brands, Partner Brands, Hasbro Gaming and Emerging Brands to decline 21.6%, 28.7%, 14.1% and 4.2% year over year to $425.8 million, $147.3 million, $123.4 million and $73.2 million, respectively. Consumer Products, Wizards Of The Coast & Digital Gaming and Entertainment segments’ revenues are expected to decline 17.1%, 10.9% and 42.5% year over year, respectively.
The bottom line of HAS is likely to have been affected by higher cost of sales due to higher product costs, inventory obsolescence, sales allowances and closeouts in its toy and game products. For the first quarter, our model predicts adjusted operating margin to decline 250 basis points year over year.
What the Zacks Model Unveils
Our proven model doesn’t 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.
Earnings ESP: Hasbro has an Earnings ESP -42.81%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. 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 Zacks 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 quarter to be reported:
Wynn Resorts, Limited WYNN has an Earnings ESP of +111.38% and a Zacks Rank #2.
Shares of Wynn Resorts have surged 58% in the past year. WYNN’s earnings beat the estimates in two of the trailing four quarters and missed twice, the average surprise being 0.6%.
Hyatt Hotels Corporation H has an Earnings ESP of +56.57% and a Zacks Rank #3.
Shares of Hyatt Hotels have increased 20.4% in the past year. H’s earnings beat estimates in each of the trailing four quarters, the average surprise being 1,380.7%.
Choice Hotels International, Inc. CHH has an Earnings ESP of +7.21% and a Zacks Rank #3.
Shares of Choice Hotels have declined 10.8% in the past year. CHH’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 3.5%.
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