Hasbro reported quarterly earnings of $1.3 per share, exceeding the consensus estimate of $0.78 per share. This figure compares to last year’s earnings of $1.22 per share, indicating an earnings surprise of +66.67%.
In the previous quarter, Hasbro managed an earnings surprise of +55.22% by reporting $1.04 per share against an expected $0.67. Over the past four quarters, the company has consistently surpassed earnings per share estimates.
Hasbro’s revenues for the quarter ended June 2025 were $980.8 million, outperforming the consensus estimate by 10.43%. Compared to the previous year, when revenues were $995.3 million, the company has exceeded revenue estimates three times in the last four quarters.
Since the start of the year, Hasbro shares have increased by 38.7%, in contrast to the S&P 500’s 7.3% rise. The stock’s future price movements will likely depend on management’s comments regarding future earnings expectations.
Estimates for the coming quarter stand at $1.63 EPS on $1.27 billion in revenues. For the current fiscal year, the projections are $4.30 EPS on $4.23 billion in revenues. Meanwhile, within the same industry, Jakks Pacific is anticipated to report a quarterly loss of $0.38 per share.
Given the strong earnings beat, we believe the positive momentum in the stock will continue in the short term. The impressive outperformance against the S&P 500 is now justified by fundamental results, not just speculation. In fact, following similar positive news, analysts at Bank of America recently reiterated a “Buy” rating with a price target suggesting an additional 15-20% upside from current levels.
For derivative traders, we see an opportunity not in buying expensive calls, but in selling put options. This strategy capitalizes on the elevated implied volatility that often precedes an earnings announcement and expresses confidence that the stock will hold its current levels or climb higher. Selling out-of-the-money puts allows traders to collect a premium, essentially getting paid to agree to buy the stock at a lower price.
Historically, the stock has experienced a post-earnings “volatility crush,” where the cost of options decreases after the uncertainty of the report is removed. In the trading sessions following its last four earnings announcements, implied volatility has contracted by an average of 25%, making it an ideal environment for option sellers. The current market data shows open interest in put options for the next expiration cycle is unusually high, indicating many are betting on a downturn, which we can trade against.
The provided estimates for the coming quarter set a high bar, but the company’s consistent ability to surpass expectations builds confidence. Furthermore, the anticipated weakness from competitors in the same industry positions the company to capture more market share. We will be closely watching management’s commentary for any upward revisions to their full-year revenue outlook.
