A month has gone by since the last earnings report for Hasbro, Inc. (HAS – Free Report). Shares have added about 5.9% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Hasbro Surpasses Earnings and Revenue Estimates in Q3

Hasbro posted robust third-quarter 2017 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

Earnings and Revenues Discussion
 
Adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate of $1.93 by 8.3% and grew 3% year over year.

Hasbro’s net revenue of $1.79 billion also improved 7% over the prior-year quarter and surpassed the Zacks Consensus Estimate of $1.77 billion by 1%. Notably, revenues improved in three of its four brand portfolios.

While Franchise Brands, Hasbro Gaming, and Emerging Brands recorded a gain, revenues declined at Partner Brands.
 
Hasbro’s cost of sales ratio increased 160 basis points (bps) to 40.8%. Meanwhile, selling, distribution and administration expenses ratio rose 40 bps but royalty expense ratio declined 20 bps. Additionally, operating profit fell 0.3% year over year to $360.9 million.

Behind the Headline Numbers
 
The Franchise Brand portfolio posted revenues of $827.3 million, up 7% year over year, driven by revenue growth in Nerf, Transformers, My Little Pony, and Monopoly.
 
Partner Brand revenues decreased 2% to $485.7 million owing to declines in certain brands, including Yo-Kai Watch and Dreamworks’ Trolls, which were partially offset by revenue gains in Beyblade, Star Wars, Disney Descendants and Sesame Street brands.
 
The Hasbro Gaming portfolio recorded a 22% year-over-year increase in revenues to $280.1 million. This uptick reflects Hasbro’s diverse gaming portfolio, including face-to-face gaming and digital gaming.
 
Also, Emerging Brands revenues increased 9% to $198.3 million, driven primarily by growth in Baby Alive and Furreal Friends.
 
Regionally, net revenue from the United States and Canada segment increased 7% to $993.8 million, supported by growth across all portfolios. However, the segment was negatively impacted by the Toys “R” Us bankruptcy in the both the places as well as a shift in product mix. Consequently, the segment’s operating profit declined 5% year over year to $217.3 million.
 
International revenues were $739.2 million, up 7% year over year. Revenue growth in Franchise Brands and Hasbro Gaming was offset by a decline in Emerging and Partner Brands. Notably, increased sales were registered across Latin America, Emerging markets, Europe and Asia Pacific regions. However, international operating profit was $132 million, down about 1% from a year ago.
 
The Entertainment and licensing segment revenues grew 4% year over year to $58.4 million, backed by higher consumer products and entertainment revenues. Also, the segment’s operating profit increased 20% to $16.9 million.