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Hasbro Beats on Both Top and Bottom Lines

By Seth Jayson – Updated Apr 10, 2017 at 1:47PM

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Just the facts, Fool.

Hasbro (Nasdaq: HAS) reported earnings on April 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Hasbro beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share expanded. GAAP loss per share grew.

Margins contracted across the board.

Revenue details
Hasbro logged revenue of $663.7 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $638.8 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.05. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.03 per share. Non-GAAP EPS of $0.05 for Q1 were 25% higher than the prior-year quarter's $0.04 per share. GAAP EPS were -$0.05 for Q1 versus -$0.02 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 51.4%, 90 basis points worse than the prior-year quarter. Operating margin was 1.6%, 250 basis points worse than the prior-year quarter. Net margin was -1.0%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $789.3 million. On the bottom line, the average EPS estimate is $0.34.

Next year's average estimate for revenue is $4.09 billion. The average EPS estimate is $2.88.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,927 members out of 2,006 rating the stock outperform, and 79 members rating it underperform. Among 556 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 541 give Hasbro a green thumbs-up, and 15 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 $38.00.

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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 recommends Hasbro. The Motley Fool owns shares of Hasbro. 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.

Stocks Mentioned

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