Hasbro (HAS) set to report Q3 2024 earnings this week, what to expect

Shares of Hasbro, Inc. (NASDAQ: HAS) were down over 1% on Monday. The stock has gained 20% over the past three months. The toymaker is set to report its third quarter 2024 earnings results on Thursday, October 24, before market open. Here’s a look at what to expect from the earnings report:

Revenue

Analysts are projecting revenue of $1.30 billion for Hasbro in the third quarter of 2024. This would represent a decline of 13% from the same period a year ago. In the second quarter of 2024, revenues declined 18% year-over-year to $995 million.

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.