Hasbro's Q1 Earnings & Revenues Beat Estimates, Stock Up

Hasbro, Inc. HAS reported first-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics registered improvement on a year-over-year basis.

Following the results, the stock rose 6.7% in today’s pre-market trading session.

The company reported strong revenue growth in the quarter, supported by a shift toward higher-margin businesses. Hasbro continued to make progress in reaching its $1 billion cost-saving target. Growth in the Wizards segment, licensing gains and the asset-light model helped offset tariff-related pressure.

Despite a challenging environment, Hasbro’s Playing to Win strategy showed progress. The company focused on disciplined execution and key partnerships, including the extended agreement with Disney. Strategic investments also began contributing to results.

HAS’ Q1 Earnings & Revenues

In first-quarter fiscal 2025, HAS reported adjusted earnings per share (EPS) of $1.04, which beat the Zacks Consensus Estimate of 67 cents. In the year-ago quarter, it reported an adjusted EPS of 61 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Hasbro, Inc. Price, Consensus and EPS Surprise

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

Net revenues of $887.1 million beat the consensus mark of $769.7 million. The top line rose 17% year over year from $757.3 million reported in the prior-year period.

HAS’ Segmental Revenues

Hasbro has three reportable operating segments, Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment.

In the fiscal first quarter, net revenues from the Consumer Products segment decreased 4% year over year to $398.3 million. Despite the decline, the figure beat expectations. The better-than-expected performance was supported by strong licensing revenues. Adjusted operating margin was negative 7.8% compared with negative 9.2% reported in the year-ago quarter.

The Wizards of the Coast and Digital Gaming segment’s revenues totaled $462.1 million, up 46% from $316.3 million reported in the year-ago quarter. Adjusted operating margin was 49.8% compared with 38.8% reported in the year-ago quarter.

The Entertainment segment’s revenues plunged 5% year over year to $26.7 million. Adjusted operating margin was 65.2% compared with 65% reported in the year-ago quarter.

Operating Highlights of HAS

In the fiscal first quarter, Hasbro’s cost of sales (as a percentage of net revenues) was 23.1% compared with 27% in the year-earlier quarter.

Selling, distribution and administration expenses were $269.6 million compared with $234.8 million reported in the prior-year quarter.

The company reported adjusted EBITDA of $274.3 million compared with $172.8 million a year ago. Our estimate for the metric was $184.8 million.

Hasbro’s Balance Sheet

As of March 30, 2025, cash and cash equivalents were $621.1 million compared with $570.2 million as of March 31, 2024. At the end of the reported quarter, inventories totaled $295.8 million compared with $336.2 million a year ago.

As of March 30, 2025, long-term debt was $3.33 billion, up from $2.97 billion as of March 31, 2024.

HAS’s 2025 Outlook

For 2025, Hasbro anticipates a slight increase in total revenues on a constant currency basis. It expects the adjusted operating margin to be between 21% and 22%. The company expects adjusted EBITDA in the range of $1.1 billion to $1.15 billion.

HAS’ Zacks Rank

Hasbro currently has a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks from the Zacks Consumer Discretionary sector are TEGNA Inc. TGNA, Life Time Group Holdings, Inc. LTH and American Outdoor Brands, Inc. AOUT.
 
TEGNA presently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter earnings surprise of 6.3%, on average. The stock has gained 15.2% in the past year. The consensus estimate for TGNA 2026 sales and EPS implies growth of 11.3% and 93.8%, respectively, from the year-ago levels.

Life Time Group carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 21.6%, on average. The stock has surged 111.5% in the past year.

The consensus estimate for Life Time Group’s 2025 sales and EPS implies growth of 12.9% and 37.9%, respectively, from the year-ago levels.

American Outdoor carries a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 79.6%, on average. The stock has gained 40.7% in the past year.

The Zacks Consensus Estimate for American Outdoor’s fiscal 2025 sales and EPS indicates growth of 3.7% and 93.8%, respectively, from the year-ago levels.

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This article originally published on Zacks Investment Research (zacks.com).

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