Hasbro: Positive Earnings and Growth Ahead

Noah Kiedrowski - INO.com Contributor - Biotech - Hasbro Inc.


Introduction and Backdrop:

Hasbro Inc. (NASDAQ:HAS) just released earnings, and the stock shot up from $94 to $103 or 9.5% as a result of navigating the challenging retail landscape and positive commentary on the conference call for future growth avenues. In mid-summer of 2017, Hasbro had witnessed a two-leg sell-off from its 52-week high of $116 to $88 or a 24% slide. The first leg down was from $116 to $95 followed by a second leg down from $95 to $88. These sell-offs were primarily due to retail softness and lowered guidance due to the Toys R Us bankruptcy filing which drove the stock down to $88. Hasbro was faced with a challenging environment and had to lower its guidance through the holiday season. The stock has been trading erratically since mid-summer of 2017 with 10% swings in the stock price. Ostensibly, Hasbro looks to be turning the corner and effectively managing this challenging backdrop and forging ahead with many current and future growth catalysts.

Hasbro has many current and future growth catalysts with major movie franchises, specifically with Marvel and Star Wars. Thor: Ragnarok and Star Wars: The Last Jedi rounded out 2017, posting worldwide box office gross of $854 million and $1.33 billion, respectively. Black Panther posted record-breaking numbers in its debut with $235 million domestic opening at the box office over the Presidents Day weekend. Upcoming Marvel and Star Wars movies include Avengers: Infinity War, Star Wars Han Solo and Ant-Man and The Wasp to highlight a few major films. Taking into account Hasbro’s growth, the potential acquisition of Mattel, Q1-Q2 2018 catalysts, trading at a P/E of ~20, boasting a 2.4% dividend yield and initiatives within Hasbro Studios to propel growth further presents a compelling long-term buy. Continue reading "Hasbro: Positive Earnings and Growth Ahead"

Hasbro - Major Tailwinds Ahead

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

It’s been an eventful couple of months for Hasbro Inc. (NASDAQ:HAS), the third largest toy maker in the world with Toys R Us filing for chapter 11 bankruptcy and a rumored acquisition of rival toymaker Mattel Inc. (NASDAQ:MAT) all while the stock has been trading erratically in the backdrop with 10% swings in the stock price. As a result of the Toys R Us bankruptcy filing, Hasbro had to lower its guidance through the holiday season, and as a result, shares initially tumbled 9% on the news. Recently, Hasbro had witnessed a huge sell-off from its 52-week high of $116 to $88 or a 24% slide after reporting its most recent quarterly results with lowered guidance due to the Toys R Us bankruptcy filing. Hasbro develops toys for many of the multi-billion dollar movie franchises such as Marvel Universe, Star Wars, Disney Princesses, Frozen, Transformers and Jurassic World. Hasbro has many catalysts in the near term with major movie franchises coming into the fray with upcoming Disney releases: Thor: Ragnarok and Star Wars: The Last Jedi to round out 2017. It's noteworthy to point out that Thor: Ragnarok has topped $675 million thus far at the international box office and closing in on the $750 million mark in theatrical release rising to the 10th highest grossing movie in 2017. In 2018, Black Panther, Avengers: Infinity War, Star Wars Han Solo spinoff and Ant-Man and The Wasp to highlight a few major movies. Taking into account Hasbro’s growth, the potential acquisition of Mattel, Q4 2017-Q2 2018 catalysts, trading at a P/E of ~20, boasting a 2.4% yield and initiatives within Hasbro Studios to propel growth further presents a compelling buy after this recent sell-off below $100 per share. Continue reading "Hasbro - Major Tailwinds Ahead"