• Best stocks to buy now
  • Write for us
  • Contact
Monday, March 1, 2021
  • ItalianoItaliano
Best Stocks
  • Home
  • Best stocks to buy nowHOT
  • Industries
    • All
    • 5g Stocks
    • Best Stocks to Buy Now
    • Marijuana Stocks
    • Penny Stocks
    • Tech stocks
    SYY Stock

    This Is How Sysco Corp Stock (SYY) Could Benefit From The Tech Industry Rise In 2021

    Energy Group Inc Stock

    This What Our Analysts Think Of Wec Energy Group Stock (Wec)

    ED Stock

    What Surprises Could Hold Consolidated Edison Inc Stock (ED) In Q3

    Trending Tags

    • Donald Trump
    • Flat Earth
    • Golden Globes
  • News
  • Portfolio Tracker
  • Indices
  • Home
  • Best stocks to buy nowHOT
  • Industries
    • All
    • 5g Stocks
    • Best Stocks to Buy Now
    • Marijuana Stocks
    • Penny Stocks
    • Tech stocks
    SYY Stock

    This Is How Sysco Corp Stock (SYY) Could Benefit From The Tech Industry Rise In 2021

    Energy Group Inc Stock

    This What Our Analysts Think Of Wec Energy Group Stock (Wec)

    ED Stock

    What Surprises Could Hold Consolidated Edison Inc Stock (ED) In Q3

    Trending Tags

    • Donald Trump
    • Flat Earth
    • Golden Globes
  • News
  • Portfolio Tracker
  • Indices
No Result
View All Result
Best Stocks
Home Industries

Hasbro Inc Stock (Has) Outperform The Market This Week. Here’s Why.

by Steve Sitze
February 19, 2021
in Industries, News
0
HAS Stock

Source: Getty Images

25
SHARES
513
VIEWS
Share on FacebookShare on Twitter

INVESTMENT THESIS

Hasbro Inc Stock
Source: Getty Images

Hasbro Inc. (NYSE: HAS). Internationally, we think the toy industry can grow, particularly in the Asia/Pacific region and emerging markets. 

Reflecting the company’s strong 3Q revenue and earnings, we continue to view HAS shares as attractive for long-term growth-income investors, and are maintaining our five-year BUY rating. 

RECENT DEVELOPMENTS

Hasbro Stock
Source: Getty Images

On October 26, Hasbro reported adjusted 3Q EPS of $1.88. The above-consensus earnings reflected higher-than-anticipated revenue and operating margins. Net revenue rose 13% from the prior year. The increase reflected improvement in the company’s Franchise Brands and Hasbro Gaming divisions, offset in part by weaker results in other businesses.

The cost of sales declined to 34.3% of revenue from 39.8% a year earlier. The share count rose by more than 10 million from the prior year, to 137 million.

By business segment, Franchise Brands reported sales of $808 million, up 4% year-over-year: The better-than-expected revenue reflected growth in MAGIC: THE GATHERING and Hasbro Gaming. 

In Partner Brands, revenue fell 4% to $409 million. Hasbro Gaming revenue rose 3%, to $239 million, led by MAGIC: THE GATHERING and Monopoly.

Emerging Brands reported an 18% decrease in revenue, to $155 million. The consensus estimate had called for revenue of $153 million.

Entertainment, Licensing and Digital revenue fell 23% to $89 million, driven by the closure of BackFlip Studios.

Royalty expense rose $49 million to nearly $177 million. Selling, distribution and administrative costs rose to 18% of revenue from 17.5% a year earlier. 

Going forward, we expect an increase in digital gaming licenses to benefit the operating margin.

In its 1Q20 earnings release, management withdrew its 2020 guidance.

As discussed in a previous note, in 2019, revenue rose 2.5% to $4.7 billion, and operating earnings rose to $4.07 from $3.85 per share. The adjusted operating margin was 14.2%.

FINANCIAL STRENGTH & DIVIDEND 

HAS Hasbro Inc Stock
Source: Getty Images

Accounts receivable were up nearly $20 million, while inventory fell to $540 million. Inventories were 30% of revenue, and below the five-year range of 47%-65%.

In its 1Q20 earnings release in April, management reiterated its commitment to paying a dividend. 

MANAGEMENT & RISKS

Hasbro Inc HAS Stock
Source: Getty Images

Brian Goldner has served as Hasbro’s chairman and CEO since May 2015. Hasbro’s two major shareholders own 25% of total shares outstanding, which could make it difficult for minority shareholders to implement change. 

COMPANY DESCRIPTION 

Hasbro HAS Inc Stock
Source: Getty Images

Hasbro is a major producer of toys and games, including digital games. Its leading brands include Nerf, My Little Pony, Monopoly, Transformers, Play Doh, Magic, The Gathering and Transformers. The company is also licensed to manufacture Star Wars, Jurassic Park and Marvel toys. On December 30, 2019, Hasbro completed its $4.0 billion acquisition of Entertainment One (LSE: ETO), which develops, produces and distributes entertainment content. With a market cap of approximately $10 billion, the shares are generally regarded as large-cap growth. 

VALUATION 

Hasbro Incorporated Stock
Source: Getty Images

Our target, combined with the dividend, implies a potential total return of 15% from current levels. 

On November 20 at midday, BUY-rated HAS traded at $92.07, up $0.32.

Source: Argus

Tags: HASHAS StockHasbro INCHasbro INC Stock
Steve Sitze

Steve Sitze

Next Post
ETR Stock

Will Entergy Corp Stock (Nyse: Etr) Outperform The Market In March?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

JBL Stock

Will Jabil Stock Recover After Covid-19?

1 month ago
Why is GameStop Corp. stock down in the pre-market today?

Why is GameStop Corp. stock down in the pre-market today?

3 months ago

Popular News

    Free Stocks Recommendations

    Get notified everytime we recommend a stock.
    Marketing by

    Best stocks to buy now

    Best-Stocks-Logo_dark

    We are a financial media dedicated to providing stock recommendations, news, and real-time stock prices.

    Industries

    Best stocks 5g stocks
    Best stocks to buy now
    Best gold stocks
    Best marijuana stocks
    Best penny stocks
    Best tech stocks
    Best utility stocks

    Quote

    Newsletter

    Get free stocks reccomendations and real time news.

    Marketing by
    • Best stocks to buy now
    • Write for us
    • Contact

    © 2021 Best Stocks

    No Result
    View All Result
    • Home
    • Best stocks to buy now
    • Industry
      • Utility Stocks
      • Gold Stocks
      • Best Stocks to Buy Now
      • 5g Stocks
      • Tech stocks
      • Penny Stocks
    • News
    • Portfolio Tracker
    • Indices
    • English
    • Italiano

    © 2021 Best Stocks