We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hasbro (HAS) Stock Rises on Q2 Earnings and Revenue Beat
Read MoreHide Full Article
Hasbro, Inc. (HAS - Free Report) reported second-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Despite a year-over-year revenue decline, earnings increased on the back of a favorable business mix and improved operations.
Following the results, the stock rose 11.1% in the pre-market trading session on Jul 25.
Earnings & Revenues
In second-quarter 2024, HAS reported adjusted earnings per share (EPS) of $1.22, which beat the Zacks Consensus Estimate of 77 cents. In the year-ago quarter, it reported adjusted EPS of 49 cents.
Net revenues of $995.3 million also beat the consensus mark of $942.4 million. However, the top line declined 18% year over year from $1,210 million. The downside was primarily due to eOne film divestiture.
Brand Performances
In the quarter under discussion, Franchise Brands reported revenues of $786.6 million, flat year over year. Our estimate for Franchise Brands revenues was pegged at $$717.7 million.
Partner Brands’ revenues plunged 28% year over year to $124.6 million from $172.9 million, mainly due to exited licenses. Per our model, revenues from Partner Brands were expected at $114.3 million.
Revenues at Portfolio Brands were $84.1 million, down 22% from the prior-year levels of $107.9 million. Our estimate for the Portfolio Brands revenues was $101.4 million.
Total gaming category revenues rose 12% year over year to $548.4 million.
Segmental Revenues
Hasbro has three reportable operating segments, Consumer Products, Wizards of the Coast and Digital Gaming and Entertainment.
In the second quarter, net revenues from the Consumer Products segment decreased 20% year over year to $524.5 million, primarily due to shifts in entertainment timing, planned business exits and reduced closeout sales. Adjusted operating margin was (0.1%) against 3.4% in the year-ago quarter.
The Wizards of the Coast and Digital Gaming segment’s revenues totaled $452 million, up 20% from $375.6 million in the year-ago quarter. Adjusted operating margin was 54.7% compared with 37.9% in the year-ago quarter. The upside was driven by a higher digital licensing revenue mix and lower royalty expenses.
The Entertainment segment’s revenues plunged 90% year over year to $18.8 million. Adjusted operating margin was 94.1% against (11.6%) in the year-ago quarter.
Operating Highlights
In the second quarter, Hasbro’s cost of sales (as percentages of net revenues) was 23.9% compared with 29.1% in the year-earlier quarter.
Selling, distribution and administration expenses (as percentages of net revenues) reached 32% in the quarter compared with 31.5% in the year-ago quarter.
The company reported adjusted EBITDA of $313.5 million compared with $198.6 million a year ago.
Balance Sheet
As of Jun 30, 2024, cash and cash equivalents were $626.8 million, up from $216.6 million as of Jul 2, 2023. At the end of the reported quarter, inventories totaled $357.6 million compared with $731.3 million a year ago.
As of Jun 30, 2024, long-term debt was $3.46 billion, down from $3.67 billion as of Jul 2, 2023.
Updated 2024 Outlook
For 2024, segment-wise, HAS still projects Consumer Products revenues to decline in the range of 7-12% at cc from year-ago levels. This segment’s operating margin is expected to be between 4% and 6%. In the Wizards of the Coast segment, management projects revenues to decline in the 1-3% band, compared with the prior prediction of 3-5%. Operating margin is suggested to be approximately 42% compared with the prior prediction of 38% and 40%.
In 2024, HAS expects Pro-Forma Entertainment segment revenues to decline by $15 million from a year ago. Adjusted operating margin is anticipated to be approximately 60%.
For the full year, total adjusted EBITDA is now expected to be between $975 million and $1.025 billion, compared with the prior prediction of $925 million and $1 billion.
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital.
The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America and Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. Its efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year at cc. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. RCL benefited from stronger pricing on close-in demand and continued strength in onboard revenue.
During the quarter, the company achieved its Trifecta financial goals (18 months ahead of schedule), strengthened its balance sheet and reinstated dividends, enhancing shareholders’ value. The company's board of directors declared a quarterly dividend of $0.40 per share, payable on Oct 11, 2024, to shareholders of record at the close of business on Sep 20, 2024.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Hasbro (HAS) Stock Rises on Q2 Earnings and Revenue Beat
Hasbro, Inc. (HAS - Free Report) reported second-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Despite a year-over-year revenue decline, earnings increased on the back of a favorable business mix and improved operations.
Following the results, the stock rose 11.1% in the pre-market trading session on Jul 25.
Earnings & Revenues
In second-quarter 2024, HAS reported adjusted earnings per share (EPS) of $1.22, which beat the Zacks Consensus Estimate of 77 cents. In the year-ago quarter, it reported adjusted EPS of 49 cents.
Hasbro, Inc. Price, Consensus and EPS Surprise
Hasbro, Inc. price-consensus-eps-surprise-chart | Hasbro, Inc. Quote
Net revenues of $995.3 million also beat the consensus mark of $942.4 million. However, the top line declined 18% year over year from $1,210 million. The downside was primarily due to eOne film divestiture.
Brand Performances
In the quarter under discussion, Franchise Brands reported revenues of $786.6 million, flat year over year. Our estimate for Franchise Brands revenues was pegged at $$717.7 million.
Partner Brands’ revenues plunged 28% year over year to $124.6 million from $172.9 million, mainly due to exited licenses. Per our model, revenues from Partner Brands were expected at $114.3 million.
Revenues at Portfolio Brands were $84.1 million, down 22% from the prior-year levels of $107.9 million. Our estimate for the Portfolio Brands revenues was $101.4 million.
Total gaming category revenues rose 12% year over year to $548.4 million.
Segmental Revenues
Hasbro has three reportable operating segments, Consumer Products, Wizards of the Coast and Digital Gaming and Entertainment.
In the second quarter, net revenues from the Consumer Products segment decreased 20% year over year to $524.5 million, primarily due to shifts in entertainment timing, planned business exits and reduced closeout sales. Adjusted operating margin was (0.1%) against 3.4% in the year-ago quarter.
The Wizards of the Coast and Digital Gaming segment’s revenues totaled $452 million, up 20% from $375.6 million in the year-ago quarter. Adjusted operating margin was 54.7% compared with 37.9% in the year-ago quarter. The upside was driven by a higher digital licensing revenue mix and lower royalty expenses.
The Entertainment segment’s revenues plunged 90% year over year to $18.8 million. Adjusted operating margin was 94.1% against (11.6%) in the year-ago quarter.
Operating Highlights
In the second quarter, Hasbro’s cost of sales (as percentages of net revenues) was 23.9% compared with 29.1% in the year-earlier quarter.
Selling, distribution and administration expenses (as percentages of net revenues) reached 32% in the quarter compared with 31.5% in the year-ago quarter.
The company reported adjusted EBITDA of $313.5 million compared with $198.6 million a year ago.
Balance Sheet
As of Jun 30, 2024, cash and cash equivalents were $626.8 million, up from $216.6 million as of Jul 2, 2023. At the end of the reported quarter, inventories totaled $357.6 million compared with $731.3 million a year ago.
As of Jun 30, 2024, long-term debt was $3.46 billion, down from $3.67 billion as of Jul 2, 2023.
Updated 2024 Outlook
For 2024, segment-wise, HAS still projects Consumer Products revenues to decline in the range of 7-12% at cc from year-ago levels. This segment’s operating margin is expected to be between 4% and 6%. In the Wizards of the Coast segment, management projects revenues to decline in the 1-3% band, compared with the prior prediction of 3-5%. Operating margin is suggested to be approximately 42% compared with the prior prediction of 38% and 40%.
In 2024, HAS expects Pro-Forma Entertainment segment revenues to decline by $15 million from a year ago. Adjusted operating margin is anticipated to be approximately 60%.
For the full year, total adjusted EBITDA is now expected to be between $975 million and $1.025 billion, compared with the prior prediction of $925 million and $1 billion.
Zacks Rank
Hasbro carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Peer Releases
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital.
The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America and Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. Its efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year at cc. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. RCL benefited from stronger pricing on close-in demand and continued strength in onboard revenue.
During the quarter, the company achieved its Trifecta financial goals (18 months ahead of schedule), strengthened its balance sheet and reinstated dividends, enhancing shareholders’ value. The company's board of directors declared a quarterly dividend of $0.40 per share, payable on Oct 11, 2024, to shareholders of record at the close of business on Sep 20, 2024.