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Hasbro (HAS) Beats EPS Consensus on Strong Margins, Results Seen as 'Solid'

July 19, 2022 9:24 AM EDT
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Price: $59.29 +1.16%

Rating Summary:
    13 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

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    Up: 17 | Down: 24 | New: 19
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Shares of Hasbro (NASDAQ: HAS) are up 1% in premarket trading after the toymaker reported better-than-expected adjusted EPS for Q2.

The company reported Q2 adjusted EPS of $1.15, up from $1.05 in the year-ago period and topping the consensus estimates of 93c per share. Revenue for the quarter came in at $1.34 billion versus the consensus estimate of $1.37 billion.

The company generated $743.9 million in Franchise brands revenue, also above the consensus projection of $684.9 million. Partner Brands revenue stood at $219.4 million, beating the expected $214.2 million.

Hasbro Gaming revenue was reported at $125.8 million, missing the analyst consensus of $154.6 million. Hasbro reported Emerging Brands revenue of $92 million, while analysts were looking for $103.2 million. TV/Film/Entertainment revenue stood at $158.1 million, well below the estimates of $213.5 million.

Hasbro reported an adjusted EBITDA of $308.3 million, up 6.5% YoY and above the consensus estimates of $263.7 million on lower costs.

"Wizards of the Coast turned in its biggest quarter ever, led by 15% growth in tabletop gaming and 11% growth in MAGIC: THE GATHERING across platforms,” the company highlighted in a press release.

Goldman Sachs analyst Michael Ng said Hasbro delivered “solid results.”

“We expect HAS to trade higher on the solid 2Q22 results. Consumer Products delivered better-than-expected revenue and while WOTC revenue missed, margins of 53.7% were much better-than-expected and the highest on record (since at least 2019). Although Entertainment missed (-4% excluding Music), HAS reiterated its full-year outlook for Entertainment with line of sight into the growth improvement in the rest of the year (e.g., more scripted deliveries, animated deliveries in 2H),” Ng reflected on earnings in the research note.

By Senad Karaahmetovic

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