Earnings Preview: Hasbro, Inc.

Hasbro, Inc (HAS) is expected to report Q4 earnings Monday with a conference call scheduled for 8:30 a.m. ET.

Guidance

Analysts are looking for a profit of 81c on revenue of $1.22B. The consensus is 74c to 88c for EPS, and revenue of $1.18B to $1.25B, according to First Call. Investors will look to see the impact that toy-industry recalls have had on Hasbro, as the market has been concerned that recalls would pressure wholesale and retail demand for the industry over the recent holiday season. Additionally, investors will take note how much toy sales have been impacted by the consumer slowdown.

Analyst Views

Banc of America upgraded shares to Buy from Neutral; the firm believes that Q4 demand for toys overall, and for Hasbro specifically, was solid despite concerns about recalls and a slowing economy. Banc of America expects media-supported toy lines in 2008 to be down only marginally from 2007, and sees continued growth from girls' toys and overall international sales.

Zacks maintains a Hold rating. Zacks thinks Hasbro is well-positioned, given the company's strong financial position. While the toy maker has an "impressive array" of products, strong 2007 results may create difficult comparisons this year. Combined with uncertainties regarding consumer spending going forward, Zacks projects relatively flat earnings in 2008.

Comments

[Robert DiAlberto]

HAS can be a tough one. I don't feel very optimistic.

2008 Feb 10 09:24 AM