Hasbro, Inc. HAS is scheduled to report second-quarter 2026 results on July 21, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 31.3%.
HAS’ earnings have topped the consensus mark in each of the trailing four quarters, the average surprise being 37.9%.
How Are Estimates Placed?
The Zacks Consensus Estimate for earnings is pegged at $1.15 per share, indicating a 11.5% decrease from $1.30 reported a year ago.
For revenues, the consensus estimate is pinned at $1.05 billion, implying a 6.7% increase from the prior-year quarter’s reported figure.
Hasbro, Inc. Price and EPS Surprise
Hasbro, Inc. price-eps-surprise | Hasbro, Inc. Quote
Factors to Note Ahead of HAS’ Q2 Results
Revenues
Hasbro’s top line in second-quarter 2026 is likely to have been driven by continued strength in its Wizards of the Coast segment. The MAGIC franchise remains a key growth engine, supported by record demand across premier releases, expanding organized play and a growing player base. Strong backlist demand, broader distribution through the Wizards Play Network and momentum from the Secrets of Strixhaven release are likely to have supported sales volumes. The expanding MAGIC ecosystem across tabletop, digital platforms and live events might have further supported revenue growth.
Our model predicts that total Wizards of the Coast & Digital Gaming revenues are likely to increase 8% year over year to $564 million.
Additionally, the Consumer Products segment is expected to have benefited from healthy point-of-sale trends, lean retailer inventories and a stronger entertainment slate. Product launches tied to major entertainment franchises and continued focus on gaming, collectibles and multi-generational brands are likely to have supported demand. Stable contributions from digital gaming, including recurring revenue streams from mobile titles, are also likely to have supported overall revenues.
Our model predicts that total Consumer Products revenues are likely to increase 2.5% year over year to $453.7 million.
Earnings
Margins and earnings in second-quarter 2026 are likely to have remained under pressure despite expected revenue growth. Higher royalty expenses associated with licensed products and entertainment partnerships are expected to have weighed on profitability. Ongoing investments in digital gaming initiatives, product development and marketing for future game launches might have further limited margin expansion. In addition, rising oil-related input costs, including freight, resin and packaging expenses, are likely to have increased operating costs despite the company's continued productivity initiatives and cost-saving efforts.
Our model predicts gross profit margin to contract 530 basis points year over year 71.7%.
What Our Model Says About HAS Stock
Our proven model predicts an earnings beat for Hasbro this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
HAS’ Earnings ESP: Hasbro has an Earnings ESP of +2.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
HAS’ Zacks Rank: The company has a Zacks Rank #3 at present.
Other Stocks Poised to Beat on Earnings
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.
JAKKS Pacific, Inc. JAKK currently has an Earnings ESP of +51.02% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
JAKK’s earnings for the to-be-reported quarter are expected to increase 733.3%. JAKKS Pacific reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 53%.
Hooker Furnishings Corporation HOFT has an Earnings ESP of +150.00% and a Zacks Rank of 3 at present.
Hooker Furnishings is expected to register a 93.6% increase in earnings for the to-be-reported quarter. HOFT reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 126.1%.
Royal Caribbean Cruises Ltd. RCL currently has an Earnings ESP of +0.77% and a Zacks Rank of 3.
RCL’s earnings for the to-be-reported quarter are expected to decrease 10.5%. Royal Caribbean reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 5.1%.
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Hasbro, Inc. (HAS): Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report
JAKKS Pacific, Inc. (JAKK): Free Stock Analysis Report
Hooker Furnishings Corp. (HOFT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).