The Worst Is Over For Hasbro

Noah Kiedrowski - INO.com Contributor - Biotech - Hasbro


Introduction:

Hasbro Inc. (NASDAQ:HAS) released earnings that were rife with headwinds attributable to the bankruptcy of Toys"R"Us. Hasbro reported a year-over-year overall revenue decline of 16% and missed on EPS by $0.24. Hasbro cited the liquidation of Toys"R"Us and retail inventory overhang, primarily in Europe, as drags on revenue domestically and internationally. Revenue in North America fell 19% while international revenue fell 17% year-over-year during the quarter. Despite the negative headline numbers, the stock bounced to the upside after the earnings call commentary painted a positive long-term narrative while weathering the Toys"R"Us liquidation. The stock responded by moving from $79 to $87 or 10% to the upside post-earnings. Hasbro is navigating the challenging retail landscape and provided positive commentary on the conference call for future growth avenues. As the company realigns and efficiently manages the Toys"R"Us liquidation, this challenging backdrop will likely resolve to Hasbro's benefit as there are many current and future growth catalysts despite the supply chain disruption.

Hasbro has many current and future growth catalysts with major billion dollar movie franchises in the fray while riding the coattails of Black Panther into the home entertainment window which posted record-breaking numbers with $685 million domestically and $1.33 billion internationally at the box office. Combine this success with the upcoming Marvel and Star Wars movies including Avengers: Infinity War, Star Wars Han Solo and Ant-Man and The Wasp to highlight a few major films. Hasbro recently increased its dividend from $0.57 to $0.63 per share. Hasbro has excellent Q2-Q3 2018 catalysts, boasts a ~3% dividend yield, weathering the Toys"R"Us liquidation and putting forth initiatives within Hasbro Studios to further propel growth thus presenting a compelling long-term buy. Continue reading "The Worst Is Over For Hasbro"

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"

Hasbro - Future Catalysts Post Sell-Off

Noah Kiedrowski - INO.com Contributor - Biotech


The Backdrop

Hasbro Inc. (NASDAQ:HAS) is the third largest toy marker in the world and develops many household brands and games such as the iconic Monopoly board game, G.I. Joe figurines, Play-Doh, and My Little Pony. Hasbro also has exclusive contracts with major movie studios such as Disney and Universal to develop and distribute toys. 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. Throughout 2017, Hasbro has witnessed a bullish run, up nearly 27% year-to-date however the stock sold off from its 52-week high of $116 to $93 or a 20% slide after reporting it most recent quarterly results. 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. 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, back-half of the year 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.

Major Disney Catalysts Ahead

With Q3 well under way and Q4 on the horizon (historically Hasbro’s strongest quarters), I think Hasbro can produce strong quarters moving into the back half of the year. It’s noteworthy to point out that Hasbro has exclusive rights with Disney to produce Marvel Comics and Star Wars toys which last through 2020 and Hasbro is also the licensed doll maker for the Disney Princess line (Moana and Frozen are included) which started on January 1st, 2016 (Figure 1). Continue reading "Hasbro - Future Catalysts Post Sell-Off"