The 10-second takeaway
For the quarter ended July 1 (Q2), Hasbro missed slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins increased, and net margins contracted.
Hasbro reported revenue of $811.5 million. The 11 analysts polled by S&P Capital IQ hoped for revenue of $826.6 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $908.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. GAAP EPS of $0.33 for Q2 were 21% lower than the prior-year quarter's $0.42 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.6%, 300 basis points better than the prior-year quarter. Operating margin was 10.6%, 30 basis points better than the prior-year quarter. Net margin was 5.4%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.39 billion. On the bottom line, the average EPS estimate is $1.27.
Next year's average estimate for revenue is $4.29 billion. The average EPS estimate is $2.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,966 members out of 2,043 rating the stock outperform, and 77 members rating it underperform. Among 526 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 513 give Hasbro a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hasbro is hold, with an average price target of $37.00.
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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. The Motley Fool owns shares of Hasbro. 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.