Hasbro reported earnings of $1.3 per share this quarter, which is higher than the expected $0.78 per share. This is an increase compared to last year’s earnings of $1.22 per share, showing a positive surprise of +66.67%. In the previous quarter, Hasbro had an earnings surprise of +55.22%, reporting $1.04 per share when analysts expected $0.67. Over the past year, the company has consistently beaten earnings expectations. For the quarter ending June 2025, Hasbro’s revenues were $980.8 million, exceeding the expected $888 million by 10.43%. This is a drop from last year’s revenue of $995.3 million, but Hasbro has outperformed revenue estimates three times in the last four quarters. Since the beginning of the year, Hasbro shares have risen by 38.7%, while the S&P 500 has only increased by 7.3%. The future price of Hasbro’s stock will likely depend on what management says about future earnings. Analysts expect the next quarter to bring $1.63 EPS on $1.27 billion in revenues. For the current fiscal year, estimates are $4.30 EPS on $4.23 billion in revenue. In comparison, Jakks Pacific, a competitor, is predicted to report a quarterly loss of $0.38 per share. Given the strong earnings report, we believe Hasbro’s stock will keep its positive trend in the short term. Its strong performance compared to the S&P 500 is backed by solid results, not just speculation. Following this news, analysts at Bank of America reiterated a “Buy” rating, suggesting the stock could rise an additional 15-20%. For those trading derivatives, now is a good time to sell put options instead of buying costly calls. This strategy takes advantage of high implied volatility often seen before an earnings announcement. By selling out-of-the-money puts, traders can earn a premium while agreeing to buy the stock at a lower price. Historically, Hasbro’s stock has seen a decrease in options’ costs, known as a “volatility crush,” after earnings reports. In the days following its last four earnings announcements, implied volatility fell by an average of 25%, which is a great opportunity for option sellers. Current market data shows unusually high interest in put options for the next cycle, suggesting many are expecting a decline, which we can counteract. The estimates for the next quarter are quite ambitious, but Hasbro’s track record of exceeding expectations inspires confidence. Additionally, expected weaknesses from competitors give Hasbro a chance to gain more market share. We will closely monitor management’s comments for any updates to their revenue outlook for the full year.

here to set up a live account on VT Markets now