HAS Q2 Earnings on Deck: Will Consumer Product Drag Its Results?

Core Insights - Hasbro, Inc. is set to report its second-quarter fiscal 2025 results on July 23, with earnings expected to decline significantly compared to the previous year [1][9] Earnings Estimates - The Zacks Consensus Estimate for earnings is 78 cents per share, reflecting a 36.1% decrease from $1.22 reported a year ago [2][9] - Revenue estimates stand at $873 million, indicating a 12.3% decline from the prior-year quarter [2] Revenue Performance - The Consumer Products segment is projected to see a revenue decline of 23.6% year over year to $400.9 million [4] - Conversely, revenues from Wizards of the Coast & Digital Gaming and Entertainment are expected to increase by 2.1% and 1% year over year, reaching $461.4 million and $19 million, respectively [4] Market Challenges - Hasbro's revenue growth is likely impacted by macroeconomic uncertainties and tariff-related disruptions, particularly in the Consumer Products segment [3] - A slowdown in direct import activity and ongoing SKU rationalization may further constrain revenue growth [3] Margin Pressures - The company faces significant margin pressure due to rising input costs associated with tariffs and supply chain shifts, estimating a gross impact of $100 million to $300 million for the year [6] - Despite cost-saving initiatives, near-term expenses related to logistics and royalty increases are expected to compress operating margins in Q2 [6][9] Earnings Prediction Model - The current model does not predict an earnings beat for Hasbro, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [7]