Key Takeaways:
Hasbro Inc. (HAS) reported first-quarter earnings and revenue that topped analyst estimates, extending a streak of positive surprises and sending its shares higher.
The report was viewed favorably by analysts, translating to a Zacks Rank #2 (Buy) for the stock ahead of the release. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting shares may outperform the market.
The toy maker’s performance continues a pattern of exceeding expectations, with four consecutive quarters of earnings and revenue beats. The $1.47 in quarterly earnings per share compares to $1.04 per share from the same period a year ago.
Shares of Hasbro have gained about 18.5 percent since the beginning of the year, outpacing the S&P 500’s 7.4 percent gain. The strong report has investors looking for clues on the sustainability of this momentum.
The beat signals management's strategy is delivering results. Investors will now focus on the upcoming earnings call for commentary on future guidance and how estimates for the coming quarters might change. The current consensus EPS estimate is $1.30 on $1.06 billion in revenues for the next quarter.
This article is for informational purposes only and does not constitute investment advice.
