What To Expect From Hasbro's (HAS) Q2 Earnings

Toy and entertainment company Hasbro (NASDAQ:HAS) will be reporting results this Wednesday before the bell. Here’s what investors should know.

Hasbro beat analysts’ revenue expectations by 14.8% last quarter, reporting revenues of $887.1 million, up 17.1% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Is Hasbro a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Hasbro’s revenue to decline 11.4% year on year to $882.1 million, improving from the 17.7% decrease it recorded in the same quarter last year.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hasbro has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Hasbro’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Levi's delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 5.8%, and Nike reported a revenue decline of 12%, topping estimates by 3.4%. Levi's traded up 11.1% following the results while Nike was also up 15.2%.

Read our full analysis of Levi’s results here and Nike’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 11.3% on average over the last month. Hasbro is up 10.3% during the same time and is heading into earnings with an average analyst price target of $82.50 (compared to the current share price of $77.90).

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