Core Viewpoint - Hasbro's recent earnings report shows a mixed performance with a decline in revenues but an increase in earnings, leading to raised full-year guidance despite macroeconomic challenges [2][3][10]. Financial Performance - In Q2 fiscal 2025, Hasbro reported adjusted EPS of $1.3, exceeding the Zacks Consensus Estimate of 78 cents, and up from $1.22 in the prior year [4]. - Net revenues were $980.8 million, beating the consensus mark of $877.3 million, but down 1% from $995.3 million in the previous year [4]. - Adjusted EBITDA was $302 million, compared to $313.5 million a year ago [7]. Segment Performance - Consumer Products segment revenues decreased 16% year over year to $442.4 million, although it beat expectations due to strong licensing revenues [5]. - The Wizards of the Coast and Digital Gaming segment saw revenues increase by 16% to $522.4 million, with an adjusted operating margin of 46.3% [6]. - The Entertainment segment's revenues fell 15% to $16 million, with an adjusted operating margin of 63.1% [6]. Guidance and Outlook - Hasbro raised its full-year revenue guidance, now expecting mid-single-digit growth on a constant currency basis, up from slight growth expectations [10]. - Adjusted operating margin is now anticipated to be between 22% and 23%, and adjusted EBITDA is expected to be in the range of $1.17-$1.2 billion, an increase from prior estimates [10]. Balance Sheet Highlights - As of June 29, 2025, cash and cash equivalents were $546.9 million, down from $626.8 million a year ago, while inventories increased to $417.1 million from $357.6 million [9]. - Long-term debt decreased to $3.32 billion from $3.46 billion year over year [9]. Market Sentiment - Estimates for Hasbro have trended upward recently, contributing to a Zacks Rank of 1 (Strong Buy), indicating expectations for above-average returns in the coming months [11][13].

Core Insights - Hasbro reported revenue of $980.8 million for the quarter ended June 2025, reflecting a year-over-year decline of 1.5% but an EPS of $1.30, up from $1.22 a year ago, indicating a positive earnings surprise of +66.67% compared to the consensus estimate of $0.78 [1][2] Revenue Performance - External Net Revenues from Entertainment were $16 million, below the average estimate of $19.18 million, representing a year-over-year decline of -14.9% [4] - External Net Revenues from Consumer Products reached $442.4 million, exceeding the average estimate of $413.93 million, but still showing a decline of -15.7% year-over-year [4] - External Net Revenues from Wizards of the Coast and Digital Gaming were $522.4 million, surpassing the estimated $459.57 million, with a year-over-year increase of +15.6% [4] Segment Analysis - Within Wizards of the Coast and Digital Gaming, Tabletop Gaming generated $406.3 million, exceeding the average estimate of $337.95 million, marking a year-over-year increase of +32.1% [4] - Digital and Licensed Gaming revenues were $116.1 million, below the average estimate of $124.14 million, reflecting a year-over-year decline of -19.6% [4] - Operating profit for Wizards of the Coast and Digital Gaming was $241.8 million, significantly above the average estimate of $185.99 million [4] - The Corporate & Other segment reported an operating loss of $-16.7 million, better than the average estimate of $-37.23 million [4] - The Entertainment segment achieved an operating profit of $6.3 million, exceeding the estimated $0.91 million [4] Stock Performance - Hasbro's shares have returned +6.9% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

Core Insights - Hasbro (HAS) is expected to report quarterly earnings of $0.76 per share, reflecting a 37.7% decline year-over-year, with revenues forecasted at $872.98 million, down 12.3% from the previous year [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 1.1%, indicating analysts' reassessment of their initial forecasts [2] - Prior to earnings releases, revisions to earnings projections are crucial for predicting investor behavior, as studies show a strong correlation between earnings estimate trends and short-term stock performance [3] Revenue Forecasts - Analysts estimate 'External Net Revenues- Entertainment' at $19.18 million, a 2% increase year-over-year [5] - 'External Net Revenues- Consumer Products' is projected to be $413.93 million, reflecting a 21.1% decrease from the prior-year quarter [5] - 'External Net Revenues- Wizards of the Coast and Digital Gaming' is expected to reach $459.57 million, indicating a 1.7% increase year-over-year [6] - The consensus for 'Wizards of the Coast and Digital Gaming Net Revenues- Tabletop Gaming' stands at $337.95 million, showing a 9.9% increase from the previous year [6] - 'Wizards of the Coast and Digital Gaming Net Revenues- Digital and Licensed Gaming' is estimated at $124.14 million, a 14% decline from the prior-year quarter [7] Operating Profit - Analysts project 'Operating profit (loss)- Wizards of the Coast and Digital Gaming' to be $185.99 million, down from $247.10 million in the previous year [7] Stock Performance - Over the past month, Hasbro shares have increased by 13.6%, outperforming the Zacks S&P 500 composite, which rose by 5.4% [7] - Currently, Hasbro holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [7]