Hasbro, Inc. HAS is scheduled to report third-quarter fiscal 2024 results on Oct. 24, 2024, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 58.4%.

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Q3 Estimates

The Zacks Consensus Estimate for earnings is pegged at $1.34 per share, indicating a decline of 18.3% from $1.64 reported a year ago.

For revenues, the consensus estimate is pegged at $1.30 billion, suggesting a decline of 13.5% from the prior-year quarter’s figure.

Let us delve deeper.

Factors to Note

Hasbro’s fiscal third-quarter results are likely to be negatively impacted by dismal Partner and Portfolio Brands revenues. Our model predicts the Partner and Portfolio brands revenues to decline 33.6% and 24.9%, respectively, to $151.6 million and $127.9 million year over year.

Hasbro's initiatives, including product launches and a shift toward more technology-driven toys for reviving its brands and boosting sales, are likely to drive profits in the long term. However, costs related to those initiatives might prove detrimental in the near term. It is likely to have shouldered high expenses with respect to freight, product costs, sales allowances and various toy and gaming products closeouts. Also, product development costs are likely to have added pressure on the bottom line. Our model forecasts the cost of sales to increase 0.6% year over year to $497.3 million.

On the other hand, the company’s focus on enhancing and diversifying HAS’ product portfolio, inventory optimization and solid demand for its gaming category bodes well. The company’s gaming segment remains a significant contributor to its operating performance.

Hasbro announced several significant licensing agreements poised to expand its gaming and entertainment horizons. Partnerships with Resolution Games, known for the VR game Demeo, and Game Loft, the creators of Disney Dreamlight Valley, are set to develop new games under the Dungeons & Dragons universe. These collaborations, coupled with the leverage of Hasbro's iconic IP, are likely to have aided the company’s performance in the third quarter.

Hasbro, Inc. Price and EPS Surprise

Hasbro, Inc. price-eps-surprise | Hasbro, Inc. Quote

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Hasbro this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Hasbro currently has an Earnings ESP of -3.09% and a Zacks Rank #3.