Hasbro (HAS) Up 5.8% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Hasbro (HAS). Shares have added about 5.8% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Hasbro due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Hasbro, Inc. before we dive into how investors and analysts have reacted as of late.Hasbro's Q2 Earnings and Revenues Beat EstimatesHasbro reported second-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line declined year over year while the bottom line increased from the prior-year's quarter figure. The downside was mainly due to weaker contributions from the Consumer Products and Entertainment segments.Nonetheless, the company raised its full-year revenue and adjusted EBITDA guidance. The update was supported by strong performance in the Wizards segment, along with steady contributions from the games portfolio, licensing partnerships and digital initiatives. Despite ongoing macroeconomic challenges, the company expects cost efficiency measures and business diversification to support its growth plans for 2025 and beyond.Hasbro'sQ2 Earnings & RevenuesIn second-quarter fiscal 2025, HAS reported adjusted earnings per share (EPS) of $1.3, which beat the Zacks Consensus Estimate of 78 cents. In the year-ago quarter, it reported an adjusted EPS of $1.22.Net revenues of $980.8 million beat the consensus mark of $877.3 million. However, the top line declined 1% from $995.3 million reported in the prior-year period.Hasbro'sSegmental RevenuesHasbro has three reportable operating segments, Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment.In the fiscal second quarter, net revenues from the Consumer Products segment decreased 16% year over year to $442.4 million. Despite the decline, the figure beat expectations. The better-than-expected performance was supported by strong licensing revenues. Adjusted operating margin was 0.3% against negative 0.1% reported in the year-ago quarter.The Wizards of the Coast and Digital Gaming segment’s revenues totaled $522.4 million, up 16% from $452 million reported in the year-ago quarter. Adjusted operating margin was 46.3% compared with 54.7% reported in the year-ago quarter.The Entertainment segment’s revenues plunged 15% year over year to $16 million. Adjusted operating margin was 63.1% compared with 94.1% reported in the year-ago quarter.Operating Highlights of HasbroIn the fiscal second quarter, Hasbro’s cost of sales (as a percentage of net revenues) was 23% compared with 23.9% in the year-earlier quarter.Selling, distribution and administration expenses were $282.8 million compared with $318.5 million reported in the prior-year quarter.The company reported adjusted EBITDA of $302 million compared with $313.5 million a year ago.Hasbro’s Balance SheetAs of June 29, 2025, cash and cash equivalents were $546.9 million compared with $626.8 million as of June 30, 2024. At the end of the reported quarter, inventories totaled $417.1 million compared with $357.6 million a year ago.As of June 29, 2025, long-term debt was $3.32 billion, down from $3.46 billion as of June 30, 2024.Hasbro Raises 2025 OutlookFor 2025, Hasbro now anticipates total revenues to increase in mid-single digits on a constant currency basis. Earlier, the company expected total revenues to increase slightly. It now expects the adjusted operating margin to be between 22% and 23% compared with 21-22% expected earlier.Adjusted EBITDA is now expected to be in the range of $1.17-$1.2 billion, up from the prior expectation of $1.1-$1.15 billion.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.VGM ScoresAt this time, Hasbro has a nice Growth Score of B, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Hasbro has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hasbro, Inc. (HAS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks