The 10-second takeaway
For the quarter ended April 1 (Q1), Hasbro missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
Hasbro reported revenue of $648.9 million. The 11 analysts polled by S&P Capital IQ expected net sales of $666.6 million on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $672.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.04. The nine earnings estimates compiled by S&P Capital IQ averaged $0.12 per share on the same basis. GAAP EPS were -$0.02 for Q1 versus $0.12 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.8%, 150 basis points worse than the prior-year quarter. Operating margin was 2.4%, 490 basis points worse than the prior-year quarter. Net margin was -0.4%, 300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $861.2 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $4.36 billion. The average EPS estimate is $3.01.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,959 members out of 2,024 rating the stock outperform, and 66 members rating it underperform. Among 565 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 554 give Hasbro a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hasbro is outperform, with an average price target of $38.30.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Hasbro. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.