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Have you evaluated the performance of Hasbro's (HAS) international operations for the quarter ending March 2024? Given the extensive global presence of this toy maker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

In our recent assessment of HAS' quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

The company's total revenue for the quarter stood at $757.3 million, declining 24.4% year over year. Now, let's delve into HAS' international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Decoding HAS' International Revenue Trends

Asia Pacific accounted for 6.4% of the company's total revenue during the quarter, translating to $48.8 million. Revenues from this region represented a surprise of +31.57%, with Wall Street analysts collectively expecting $37.09 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific contributed $64.8 million (5%) and $63.3 million (6.3%) to the total revenue, respectively.

Of the total revenue, $87.5 million came from Europe during the last fiscal quarter, accounting for 11.6%. This represented a surprise of -5.66% as analysts had expected the region to contribute $92.75 million to the total revenue. In comparison, the region contributed $197.3 million, or 15.3%, and $131.6 million, or 13.2%, to total revenue in the previous and year-ago quarters, respectively.

Latin America generated $37.6 million in revenues for the company in the last quarter, constituting 5.0% of the total. This represented a surprise of -10.71% compared to the $42.11 million projected by Wall Street analysts. Comparatively, in the previous quarter, Latin America accounted for $77.4 million (6%), and in the year-ago quarter, it contributed $46.4 million (4.6%) to the total revenue.

International Market Revenue Projections

Wall Street analysts expect Hasbro to report $936.99 million in total revenue for the current fiscal quarter, indicating a decline of 22.6% from the year-ago quarter. Asia Pacific, Europe and Latin America are expected to contribute 4.8% ($45.33 million), 12.8% ($120.08 million) and 6.2% ($57.88 million) to the total revenue, respectively.

For the full year, the company is projected to achieve a total revenue of $4.14 billion, which signifies a fall of 17.3% from the last year. The share of this revenue from various regions is expected to be: Asia Pacific at 5.5% ($225.66 million), Europe at 14.9% ($614.9 million) and Latin America at 6.9% ($283.21 million).

Final Thoughts

Hasbro's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

At the moment, Hasbro has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Hasbro's Recent Stock Market Performance

Over the past month, the stock has gained 14.1% versus the Zacks S&P 500 composite's 2% decrease. The Zacks Consumer Discretionary sector, of which Hasbro is a part, has declined 6.2% over the same period. The company's shares have increased 28.8% over the past three months compared to the S&P 500's 4.6% increase. Over the same period, the sector has declined 5.6%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.