Revenue
Earnings
The consensus estimate for earnings per share in Q3 2024 is $1.29, which would represent a decline of 21% compared to the prior-year quarter. In Q2 2024, adjusted EPS more than doubled to $1.22.
Points to note
Hasbro’s top line has been impacted by the eOne divestiture, and growth in the Wizards of the Coast and Digital Gaming segment has been offset by declines in the Consumer Products and Entertainment segments.
Consumer Products revenues have been impacted by planned business exits and reduced closeout volume, but it benefited from gains in FURBY, G.I. JOE, and PLAY-DOH. Hasbro has been seeing encouraging early demand for its product innovation in Beyblade, PLAY-DOH, and Transformers slated for the latter half of the year.
The company is forecasting a low single-digit decline for the CP segment in the third quarter before switching to growth in the fourth quarter. It also expects the impact from brand divestitures to continue to be a headwind.
The Wizards segment has benefited from strong growth in MAGIC: THE GATHERING as well as from strong Licensed and Digital Gaming revenue. Digital continues to be a key part of the company’s growth strategy. However, digital licensing is expected to be down in Q3 as the toy giant laps the launch of Baldur’s Gate 3.
While Hasbro’s revenues are likely to continue being pressured, the company is anticipated to benefit from its efforts in product innovation, its entertainment projects, and strength in licensing and digital.