Hasbro's stock skyrocketed 13% after reporting better than expected Q2 earnings. Hasbro Inc. (NASDAQ:HAS) is setting the post-Toys "R" Us bankruptcy narrative and laying out a business roadmap for long-term profitable growth across its brands. The headwinds attributable to the bankruptcy of Toy "R" Us appear to be subsiding. Hasbro reported year-over-year overall revenue decline of 7%, however, beat on EPS and revenue by posting $0.48 (bearing by $0.18) and $904.5 million (beating by $66.4 million), respectively. Despite the negative revenue numbers, Hasbro's stock bounced to the upside especially after the earnings call commentary painted a positive long-term narrative while weathering the Toy "R" Us liquidation domestically and abroad. As Hasbro realigns and effectively manages the Toy R Us liquidation, this challenging backdrop is beginning to resolve itself to Hasbro's benefit. There's many current and future growth catalysts for Hasbro in movie franchises such as Marvel, Star Wars and other Disney properties since Hasbro is the exclusive toy maker, potential e-sports with Dungeons and Dragons and Magic: The Gathering, newly acquired Power Rangers franchise which will emulate Hasbro's My Little Pony and Transformers' Bumblebee within Hasbro Studios and its legacy games such as Monopoly and Nerf. Hasbro has great Q3/Q4 2018 catalysts, a strong and growing dividend yield, clear skies post Toy "R" Us liquidation and putting forth initiatives within Hasbro Studios to further propel growth thus presenting a compelling long-term buy.
Jim Cramer’s Mad Money Follow-Up Interview - “The Worst Is Over”
Previously, Jim Cramer interviewed Hasbro's CEO Brian Goldner on Mad Money, and he was confident that "the worst is over" for Hasbro as the Toys "R" Us liquidation unfolds. Goldner went on to say "I am certain that, a year from now, we will not be talking about Toys "R" Us in this negative light," Goldner added.
Now as a follow-on from that interview, conducted on July 23rd, Jim Cramer caught up Goldner to assess the progress Hasbro was making towards circumventing the Toys "R" Us liquidation and its other growth initiatives within the company. Continue reading "Hasbro Spikes 13% Following Positive Q2 Earnings"