The 10-second takeaway
For the quarter ended June 30 (Q2), Hasbro missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped. GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins shrank.
Hasbro booked revenue of $766.3 million. The 11 analysts polled by S&P Capital IQ predicted revenue of $794.7 million on the same basis. GAAP reported sales were 5.6% lower than the prior-year quarter's $811.5 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 $0.29. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.34 per share. Non-GAAP EPS of $0.29 for Q2 were 12% lower than the prior-year quarter's $0.33 per share. GAAP EPS of $0.28 for Q2 were 15% lower than the prior-year quarter's $0.33 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 52.9%, 130 basis points better than the prior-year quarter. Operating margin was 9.7%, 90 basis points worse than the prior-year quarter. Net margin was 4.8%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.35 billion. On the bottom line, the average EPS estimate is $1.29.
Next year's average estimate for revenue is $4.12 billion. The average EPS estimate is $2.94.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,910 members out of 1,990 rating the stock outperform, and 80 members rating it underperform. Among 592 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 577 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 $43.44.
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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.