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.
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 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.
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.)
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.
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. 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.