Earnings Preview: Hasbro

Hasbro (HAS) is expected to report Q1 earnings before the market open on Monday, April 20 with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for a profit of 14c on revenue of $644.93M. The consensus range is 5c-22c for EPS, and revenue of $553.5M-$680M, according to First Call.

Analyst Views

Toy makers are struggling with falling sales, fewer resources to develop new products, and reduced ad budgets. So they're turning to older brands and updating them, the Wall Street Journal reported last month. The company's Q1 results are expected to be hurt by the stronger dollar, as over 40% of Hasbro's sales come from overseas.

Chris White at Wedbush Morgan expects the toy maker to report results in line or slightly below consensus estimates, and notes that a "lone bright spot" in the otherwise soft retail environment was in the boys' category, particularly film-oriented toys. Hasbro has products tied to three films this spring and summer, all of which have the potential to be blockbusters, which should give the company a boost later this year.

Barclays' Felicia R. Hendrix believes the Street will focus on inventory levels, particularly whether the company was able to work through existing inventory in the quarter and how it's addressing the rest of the year.