Will The Force Awaken Hasbro’s Upcoming Earnings?

Photo Credit: Ted Fu

Hasbro, Inc. (HAS) Consumer Discretionary - Leisure Equipment & Products | Reports April 18, Before Market Open

Hasbro (HAS), toy and board game manufacturer, is prepared to report first quarter earnings Monday, before the opening bell. Due to the mass popularity of Star Wars: The Force Awakens and other movie themed toys, Hasbro is poised for another solid earnings report. This quarter, Estimize expects Hasbro to post earnings of $0.28 on $788.28 million in revenue, 4 cents higher than Wall Street on the bottom line and $20 million on the top. Compared to the year prior, EPS is projected to grow 25% while revenue is looking to grow 9%. Hasbro is seeing rampant upward revisions activity lately with EPS increasing 53% in the past 30 days.

The boys sector is a bright spot for the toy manufacturer. Blockbuster movies over the past year have propelled boys toy sales to outperform Hasbro’s other divisions. With future installments of Star Wars and Captain America yet to hit the big screen, this sector should continue its robust growth. 

While boys and movie related toys continue to outperform, the girls segment has hit a wall. Classic brands such as My Little Pony and Furby are fighting an uphill battle with changing consumer spending habits. Besides the popular Disney Princess line, every other female focused toy group has fared poorly. Sales in this category were a weak spot in previous quarters and should continue to be in this onel.

Last quarter, Hasbro posted a strong results, beating the Estimize consensus in both EPS and revenue. Boys revenue increased 35%,year over year, to $569.8 million, while girls revenues dropped over 20% year over year for the 5th consecutive quarter.

Though weak girl related sales continue to be a damper on revenues, the consistent growth in boys, emerging markets, and product diversity give Hasbro a fighting chance to top expectations.