Toy and entertainment company Hasbro (NASDAQ:HAS) will be reporting earnings tomorrow before market hours. Here's what to expect.

Last quarter Hasbro reported revenues of $1.29 billion, down 23.2% year on year, missing analyst expectations by 4.9%. It was a weak quarter for the company, with a miss of analysts' revenue estimates as its consumer products and entertainment segments declined 25% and 49% year on year. Its Wizards of the Coast and Digital Gaming segment was a silver lining (7% growth) but not enough to move the needle on company-level performance. The company's full-year 2024 EBITDA guidance also missed Wall Street's forecast.

Is Hasbro buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Hasbro's revenue to decline 26% year on year to $740.9 million, a further deceleration on the 13.9% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing three downward revisions over the last thirty days. The company missed Wall St's revenue estimates four times over the last two years.

Looking at Hasbro's peers in the consumer discretionary segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Nike delivered top-line growth of 0.3% year on year, beating analyst estimates by 1.1% and Carnival reported revenues up 22% year on year, inline with analysts' estimates. Nike traded up 3% on the results, and Carnival was flat on the results.

Read our full analysis of Nike's results here and Carnival's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share price declining 5.4% over the last month. Hasbro is flat during the same time, and is heading into the earnings with analyst price target of $61, compared to share price of $55.9.

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