Hasbro Inc. (NASDAQ:HAS) Q3 Earnings Report: A Mixed Financial Performance

• Earnings Per Share (EPS) of $1.73 significantly surpassed the Zacks Consensus Estimate, indicating a strong earnings performance.
• Revenue of $1.28 billion fell slightly short of expectations, highlighting challenges in the Consumer Products and Entertainment segments.
• Despite a revenue miss, Hasbro's financial ratios such as a current ratio of 1.47 demonstrate the company's ability to manage short-term liabilities.

Hasbro Inc. (NASDAQ:HAS) is a well-known player in the global toy and entertainment industry. The company designs and sells a wide range of toys, games, and entertainment products. It competes with other major companies like Mattel and LEGO. On October 24, 2024, Hasbro reported its third-quarter earnings, revealing a mixed financial performance.

Hasbro's earnings per share (EPS) for the quarter were $1.73, significantly surpassing the Zacks Consensus Estimate of $1.31. This represents a 32.06% positive surprise and an improvement from the previous year's EPS of $1.64. Over the past four quarters, Hasbro has exceeded consensus EPS estimates three times, showcasing its ability to deliver strong earnings.

Despite the impressive EPS, Hasbro's revenue for the quarter was $1.28 billion, slightly below the Zacks Consensus Estimate of $1.3 billion. This shortfall represents a 1.09% negative surprise and a 14.8% decline from the $1.5 billion reported in the same period last year. The decline in revenue is attributed to underperformance in the Consumer Products and Entertainment segments.

Following the earnings release, Hasbro's stock experienced a 3.6% drop in pre-market trading on October 24. The company's financial ratios provide further insight into its performance. Hasbro's price-to-sales ratio is approximately 2.13, while its enterprise value to sales ratio stands at about 2.77. The debt-to-equity ratio is around 2.64, indicating a significant level of leverage.

Hasbro's current ratio is about 1.47, suggesting the company's ability to cover its short-term liabilities with its short-term assets. Despite the revenue miss, Hasbro has managed to exceed consensus revenue estimates twice in the last four quarters, indicating some resilience in its operations.