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Core Insights - Hasbro, Inc. is set to report its third-quarter fiscal 2025 results on October 23, with previous earnings exceeding estimates by 66.7% [1][10] Earnings Estimates - The Zacks Consensus Estimate for earnings is $1.66 per share, reflecting a 4.1% decline from $1.73 a year ago, while revenue is estimated at $1.35 billion, indicating a 5% increase from the prior year [2] Revenue Drivers - The growth in Hasbro's top line is expected to be driven by the continued success of Wizards of the Coast and Digital Gaming, which are key growth engines [3] - Strong backlist sales from Final Fantasy are anticipated to contribute positively, reinforcing the MAGIC franchise [3] - Organized play participation and community engagement are providing recurring revenue support, alongside successful licensing initiatives like MONOPOLY GO! [4] Consumer Products Performance - Consumer Products revenue is projected to decline by 7.1% year over year to $798.6 million, while Wizards of the Coast & Digital Gaming revenues are expected to rise by 23.4% to $498.5 million [6] Profitability Challenges - Profitability may be impacted by structural cost pressures and a challenging macroeconomic environment, including rising tariffs on imports from China and potential retaliatory duties from other manufacturing hubs [7][10] Earnings Prediction - The model indicates a likelihood of an earnings beat for Hasbro, supported by a positive Earnings ESP of +1.21% and a Zacks Rank of 2 (Buy) [8]

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]

Financial Data and Key Metrics Changes - The company reported the highest operating profit margin in its history, exceeding 20% [18][19] - Strong results were noted across the board, particularly in Wizards of the Coast and digital games, which reached all-time highs [18] Business Line Data and Key Metrics Changes - Consumer products returned to profitability, indicating a positive shift in this segment [18] - The Playing to Win strategy is already showing strong demand across key brands and growing licensing momentum [22] Market Data and Key Metrics Changes - The company is experiencing signs of recovery in consumer products despite a volatile tariff environment [22] - Nearly 70% of revenue comes from higher-margin categories like games, digital, and licensing, which have less exposure to global supply risks [23] Company Strategy and Development Direction - The company has reshaped itself into a faster, leaner, and more focused business by exiting non-core operations and prioritizing high-margin growth areas [19][20] - The Playing to Win strategy focuses on profitable franchises, targeting products for fans aged 13 and older, expanding reach across demographics, and investing in digital and direct channels [20][21] Management's Comments on Operating Environment and Future Outlook - The company acknowledges macro pressures but emphasizes control over retail partnerships, supply chain improvements, and margin protection through disciplined execution [23] - The company is positioned to be aggressive in the toy business, aiming to grow market share while others are cautious [23][24] Other Important Information - The long-term partnership with Disney has been extended, enhancing relationships around major intellectual properties like Marvel and Star Wars [23] Q&A Session Summary - No questions were submitted during the Q&A session [26]