Shares of Toymaker Hasbro Rise on Q4 Earnings Beat

Global toy manufacturer Hasbro reported better-than-expected earnings and revenue in the holiday quarter, sending its shares up over 1.5% in pre-market trading on Monday.

The toymaker said its revenue surged over 50% to $2.01 billion, beating the Wall Street consensus estimates of $1.87 billion. On an annual basis, it also topped the fiscal year 2021 sales estimates, with revenue of $6.42 billion versus expectations of $6.27 billion.

A recovery in the TV production business and price increases to counter the effects of supply chain issues contributed to the toymaker’s growth, according to a Reuters report.

The company earned on an adjusted basis $1.21 per share, topping the market expectations of $0.88. The Board of Directors also declared a quarterly dividend increase of 3% to $0.70 per share.

Following this, Hasbro stock rose over 1.5% to $95.35 in pre-market trading on Monday. The stock slumped over 7% so far this year after falling more than 8% in 2021.

Analyst Comments

“Q4 release reflected a strong holiday, besting estimates across all measures – sales, GM%, OM%, and EPS. Sales +17% led by Wizards (+18%) and Entertainment (+54%). As anticipated, the FY22 outlook was more conservative with sales +LSD%, op profit +LSD%, and OCF $700-800M – reflecting the ongoing presence of COVID. A positive surprise, HAS issued an initial FY23 view – sales accel (+MSD%-plus), OM% 16%+, and OCF ~$1B. multi-year looks promising,” noted Stephanie Wissink, equity analyst at Jefferies.

Hasbro Stock Price Forecast

Eight analysts who offered stock ratings for Hasbro in the last three months forecast the average price in 12 months of $118.00 with a high forecast of $138.00 and a low forecast of $93.00.

The average price target represents a 25.64% change from the last price of $93.92. Of those eight analysts, seven rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Several analysts have updated their stock outlook. D.A. Davidson cut the target price to $138 from $140. UBS raised the target price to $120 from $116. Truist Securities cut the target price to $100 from $105. JPMorgan lowered the target price to $110 from $112.

Technical analysis suggests it is good to sell as 100-day Moving Average and 100-200-day MACD Oscillator signals a strong selling opportunity.

Check out FX Empire’s earnings calendar

Wall Street Week Ahead Earnings: KKR, Walt Disney, Coca-Cola, Twitter and PepsiCo in Focus

Investors will focus on December quarter earnings for stocks that are economically sensitive, which should show better profits than technology stocks. Increasing Treasury yields and risk aversion could hit the stock market hard over the coming months. In addition, investors will closely monitor the latest news on the rapidly spread Omicron coronavirus variant to see how it impacts earnings in 2022.

Earnings Calendar For The Week Of February 7

Monday (February 7)

CHGG Chegg $0.13
HAS Hasbro $0.85
LEG Leggett & Platt $0.73
ON ON Semiconductor $0.94
THC Tenet Healthcare $1.49
TSN Tyson Foods $2.01


Tuesday (February 8)


The U.S.-based investment firm KKR & Co is expected to report its fourth-quarter earnings of $1.02 per share, which represents year-over-year growth of over 108% from $0.49 per share seen in the same period a year ago.

The company that manages multiple alternative asset classes would post revenue growth of 17% to $784.8 million. It is worth noting that the company has consistently beaten consensus earnings estimates in the last two years, at least.

“Strong near-term growth with fundraising supercycle and GA accretion coming into earnings, but we see this reflected in the price at the current valuation for a business model with greater earnings contribution from the balance sheet (40%). While strong investment performance could drive upward estimate revisions, we have less visibility on more episodic investment income gains,” noted Michael Cyprys, equity analyst at Morgan Stanley.

“Mgmt’s increased focus on expanding the platform with adjacent strategies and scaling successor funds should drive higher fee-related earnings (FRE).”


BP BP $1.18
IT Gartner $2.47
HOG Harley-Davidson $-0.37
LYFT Lyft $-0.46
PFE Pfizer $0.85


Wednesday (February 9)


Walt Disney, a family entertainment company, is expected to report its fiscal first-quarter earnings of $0.68 per share, which represents year-over-year growth of over 112% from $0.32 per share seen in the same period a year ago.

The family entertainment company would post revenue growth of over 30% to $21.15 billion. The company has beaten earnings estimates in most of the quarters in the last two years, at least.

Disney is building content assets that enable it to take advantage of the significant direct-to-consumer streaming opportunity ahead. Disney’s underlying IP remains best-in-class, supporting long term content monetization opportunities,” noted Benjamin Swinburne, equity analyst at Morgan Stanley.

“During this period of FCF pressure from Parks closures, ESPN’s FCF generation is key to driving down leverage. Historical cycles suggest a potential return to above prior peak US Parks revenues in FY23.”


AFG American Financial Group $2.98
CVS CVS Health $1.56
HMC Honda Motor $0.95
RDWR Radware $0.13
SGEN Seagen $-0.74
TM Toyota Motor $3.76
UBER Uber Technologies $-0.33


Thursday (February 10)


COCA-COLA: The world’s largest soft drink manufacturer is expected to report its fourth-quarter earnings of $0.41 per share, which represents a year-over-year decline of over 12% from $0.47 per share seen in the same quarter a year ago. However, the company’s revenue would grow nearly 4% to $8.94 billion.

TWITTER: The social media giant is expected to report its fourth-quarter earnings of $0.35 per share, which represents year-over-year growth of about 8% from $0.38 per share seen in the same period a year ago.

The company would post revenue growth of over 21% to $1.57 billion. Twitter expects revenues of approximately $1.5 billion to $1.6 billion in the fourth quarter of 2021. GAAP operating income is expected to range from $130 million to $180 million, according to ZACKS Research.

With a focus on engineering and products, Twitter expects to increase headcount and costs by 30% or more in 2021. In 2021, the company expects total revenues to grow faster than expenses.

“Lack of Negative Revisions and Relative Valuation: Valuation continues to be expensive, but we think investors are likely to continue to pay a premium for Twitter (TWTR) given 1) continued turnaround progress and 2) platform scarcity,” noted Brian Nowak, equity analyst at Morgan Stanley.

“Execution Risk Remains Around Driving Advertiser ROI: Advertiser ROI has clearly improved on Twitter, but the company needs to improve ad targeting and measurability to compete with the larger players. To do that it will have to further personalize the content that users see and use its data more effectively, both of which remain key strategic challenges (and priorities) for management.”

PEPSICO: The Harrison, New York-based global food and beverage leader is expected to report its fourth-quarter earnings of $1.52 per share, which represents year-over-year growth of over 3% from $1.47 per share seen in the same period a year ago.

The U.S. multinational food, snack, and beverage corporation would post revenue growth of about 9% to $24.35 billion. It is worth noting that the company has consistently beaten consensus earnings estimates in the last two years, at least.

The company revised its organic revenue growth to 8% from 6% previously. The company estimates core earnings of $6.20 per share for 2021, compared to $5.52 in 2020, according to ZACKS Research.

PepsiCo struggles with supply-chain headwinds that have caused it to increase costs and limit its output. Investors will want to know whether the beverage company is winning this battle when it reports its financial results for the fourth quarter of 2021 on Thursday, February 10.

“For the quarter, we are expecting PepsiCo (PEP) to deliver EPS of $1.47, which implies flat YoY growth and is 4 pennies below consensus EPS of $1.51. Our $1.47 4Q21 estimate implies FY21 EPS of $6.20, which is at the low end of management’s expectation to deliver “at least” $6.20 in EPS and may ultimately prove conservative given PepsiCo’s (PEP) history of outperforming expectations. Since 1Q18, we can see that PEP’s reported EPS has come in above consensus in 14 out of the past 15 quarters, with an average upside surprise of+5%,” noted Vivien Azer, equity analyst at Cowen.

“As we are already almost a month into the new year, all eyes will be on PepsiCo’s (PEP) initial FY22 guidance. As a reminder, on the last earnings call management noted that at the time they expected FY22 performance to be in line with its stated long-term targets, which means MSD (+4-6%) organic revenue growth and HSD core constant currency EPS growth.”


AZN AstraZeneca $0.78
EXPE Expedia Group $-0.01
GDDY GoDaddy $0.41
K Kellogg $0.8
MCO Moody’s $2.3
PEP PepsiCo $1.52
TWTR Twitter $0.16
WU Western Union $0.53


Friday (February 11)

APO Apollo Global Management $1.08
D Dominion Energy $0.93
FTS Fortis $0.58
MGA Magna International $0.81


Wall Street Closes at Record But Facebook Weighs

Facebook Inc, down 3.92%, was the biggest drag on the S&P 500 and Nasdaq, after the company warned that Apple Inc’s new privacy changes would weigh on its digital business. Shares of the social media company closed below its 200-day moving average for the first time since March 8, a technical support level that could indicate further declines.

Facebook has other issues, certainly the earnings report wasn’t as stellar,” said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.

“Then pile on the issues with the whistleblower, what they knew, what they didn’t know, how they set themselves up to benefit themselves even at the risk of kids and people that use the platform. That is going to kind of hang over it.”

However, the benchmark S&P index scored a new high, lifted by names with big market capitalizations. Nvidia Corp gained 6.70% to close at a record high of $247.17, while Inc advanced 1.68% and Apple rose 0.46%.

Support also came from a 6.95% advance in United Parcel Service Inc and a 2.03% rise in General Electric Co on the heels of their quarterly results.

The Dow Jones Industrial Average rose 15.73 points, or 0.04%, to 35,756.88; the S&P 500 gained 8.31 points, or 0.18%, at 4,574.79; and the Nasdaq Composite added 9.01 points, or 0.06%, at 15,235.72.

Earnings at S&P 500 companies are expected to grow 35.6% year-on-year in the third quarter, with market participants gauging how companies are navigating supply-chain bottlenecks, labor shortages and inflationary pressures.

“(The market) is getting tired. They ran them up ahead of earnings because everyone is expecting them to be good and robust, and they are … but the market feels tired to me now way up here,” said Polcari.

While nearly all 11 S&P sectors rose on the session, defensive plays such as utilities and real estate were among the best performers, indicating some caution in the market.

After the closing bell, Microsoft Corp gained 1.29% while Google parent Alphabet Inc slipped 0.24% following their quarterly results.

Data showed U.S. consumer confidence unexpectedly rebounded in October as concerns about high inflation were offset by improving labor market prospects. A Commerce Department report showed sales of new single-family homes surged 14.0% in September.

Ross Mayfield, investment strategist at Baird in Louisville, Kentucky, said with indexes at or near record levels, a run of good economic data could increase investor concerns the Federal Reserve may pull its timeline for a rate hike forward.

The central bank’s next policy announcement is expected on Nov. 3 after a two-day meeting.

Shares of Hasbro Inc climbed 3.23% after the toy maker posted an upbeat third-quarter profit even as it warned of a hit to holiday sales from supply chain issues.

Declining issues outnumbered advancers on the NYSE by a 1.13-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favored decliners.

The S&P 500 posted 69 new 52-week highs and no new lows; the Nasdaq Composite recorded 144 new highs and 79 new lows.

Volume on U.S. exchanges was 12.34 billion shares, compared with the 10.41 billion average for the full session over the last 20 trading days.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Chuck Mikolajczak; Editing by Richard Chang)

Marketmind: Trillion-Dollar Tesla

LONDON (Reuters) – A look at the day ahead from Sujata Rao

The news was less cheerful from Facebook which is contending with whistleblowers and falling popularity among the young. But a $50 billion buyback plan, unveiled after market close, may be enough to lift the shares on Tuesday, especially if fellow tech titans Google, Microsoft and Twitter also post upbeat figures.

All in all, the global equity index is inching back towards the record highs hit early-September. U.S. stock futures pointing north for Tuesday and Japanese markets added 1.8%. In Europe, a surprise 9% profit boost at UBS — its highest in six years — could see the pan-European banking index rally further past April 2019 highs.

But the supply-chain snarl-ups, container traffic jams and chip shortages bedevilling companies worldwide show no signs of going away any time soon.

Just take carmaker Hyundai, which missed profit estimates and predicted that the chip shortages hampering output would take a long time to fix. And French car parts maker Faurecia saw Q3 sales drop 10% as semiconductor shortages forced its customers to cut production.

Then there is the prospect of central bank policy tightening, with the Bank of England looking set to join rate-hike club next month.

It all adds up to slower economic growth and earnings, Citi reckons. That could see buy-side analysts switching to net “downgrade” mode on stock recommendations for the first time since the pandemic first hit, it added.

And don’t forget China, where another developer Modern Land missed paying a bond due on Monday. Shanghai and Hong Kong shares fell, despite gains for EV firms.

Key developments that should provide more direction to markets on Tuesday:

-Philadelphia Fed Nonmanufacturing Business Outlook Survey

-U.S. monthly home prices Aug/consumer confidence Oct/new home sales Sept

-U.S. 2-year note auction

-Europe earnings: Norsk Hydro posts record Q3; Reckitt Benckiser ups full-year f’cast after upbeat Q3; Logitech sales rise on work-from-home boom

– -U.S. earnings: 3M, Corning, Eli Lilly, General Electric, Hasbro, Invesco, JetBlue, Lockheed Martin, S&P Global, United Parcel Service, Xerox, Google, Microsoft, Texas Instruments, Twitter, Visa

(For graphic on Tesla –

(Reporting by Sujata Rao; editing by Karin Strohecker)

Why Hasbro Stock Is Up By 10% Today

Hasbro Stock Rallies As Q2 Report Highlights Strong Demand For Company’s Products

Shares of Hasbro gained strong upside momentum after the company released its second-quarter results. Hasbro reported that its revenue increased from $860.3 million in Q2 2020 to $1.32 billion in Q2 2021, an improvement of 54%.

The company reported GAAP loss of $0.17 per share which was driven by the $101.8 million charge related to the loss on eOne Music assets.

While the company’s earnings missed analyst estimates, the market focused on strong demand for Hasbro products which led to a significant increase in the company’s revenue.

Growth was especially strong in the Wizards of the Coast and Digital Gaming segment as revenue increased from $186.7 million in Q2 2020 to $406.7 million in Q2 2021, driven by successful launch of Magic: The Gathering Arena on mobile and growth of Dungeons & Dragons. Revenue has also increased materially in Hasbro’s Consumer Products and Entertaiment segments, so growth was broad-based.

What’s Next For Hasbro Stock?

Analysts expect that Hasbro will report earnings of $4.55 per share in 2021 and $5.14 per share in 2022, so the stock is trading at roughly 20 forward P/E which looks like a decent valuation level in the current market environment.

I’d note that the stock has been trading in a $90 – $100 range since the beginning of 2021, and the current attempt to settle above the high end of this range has a good chance to succeed as the second-quarter report was strong.

S&P 500 continues to trade near all-time high levels, and many stocks have become rather expensive in recent months. In this environment, many traders will search for strong companies with solid growth that trade at reasonable multiples. Hasbro, whose report has just highlighted strong growth and whose stock is trading at 20 forward P/E, may benefit from such traders’ interest.

For a look at all of today’s economic events, check out our economic calendar.

Toys ‘R’ Us Parent Sells Controlling Stake to Management Company WHP Global

Tru Kids, owned by investment funds including Solus Alternative Asset Management, had taken charge of assets including Toys “R” Us and Babies ‘R’ Us in early 2019, as part of a plan to revive the brands after the retailer’s bankruptcy.

WHP said it would manage the global TRU business going ahead for an undisclosed amount. The deal comes at a time when toymakers, including Hasbro Inc and Mattel Inc, have been seeing a sales boom as people staying indoors buy games.

(Reporting by Aditi Sebastian; Editing by Amy Caren Daniel)

Toymaker Hasbro Posts Better-Than-Expected Q3 Earnings; Target Price $94

Hasbro Inc, a global designer and distributor of traditional toys and game, reported a better-than-expected profit and revenue in the third quarter as parents bought their children more board games during the COVID-19 restrictions to keep them entertained.

The U.S. toymaker said its net revenues for the third quarter 2020 were $1.78 billion versus $1.86 billion pro forma revenues in 2019, a decline of 4%. That was higher than the market expectations of $1.75 billion.

Hasbro’s net earnings were $220.9 million, or $1.61 per diluted share, versus pro forma net earnings of $216.5 million, or $1.57 per diluted share, in 2019. Third-quarter 2020 net earnings included $19.6 million after-tax of purchased intangible amortization associated with the eOne acquisition, $13.7 million of incremental tax expense related to a change in the U.K. tax code and $4.7 million after-tax of acquisition and related costs, the company said.

Excluding these items, adjusted net earnings for the third-quarter 2020 were $258.9 million, or $1.88 per diluted share. That was higher than the market expectations of $1.63 per share.

“As a headline, Hasbro (HAS) delivered a solid beat in sales & EPS. The composition was different, but that’s the benefit of diversification,” said Stephanie Wissink, equity analyst at Jefferies, who gave a target price of $100 for the stock.

At the time of writing, Hasbro shares traded 9.51% lower at $83.25 on Monday; the stock is down about 20% so far this year.

Executives’ Comments

“Live-action entertainment production is returning, and we are set to improve deliveries in the fourth quarter with some moving into 2021. While COVID-19 remains a factor in our global operations, consumers remain engaged in activities that create joy and personal connections and we are working purposefully to deliver them the world’s best play and entertainment experiences while remaining focused on the safety and well-being of our global teams and communities,” said Brian Goldner, Hasbro’s chairman and chief executive officer.

“Hasbro’s partner factories and warehouses are open and operating and production is largely in line with demand. With a strong focus on cash collections, DSOs are down year-over-year and sequentially, and we ended the quarter with $1.13 billion in cash on the balance sheet. Importantly, as we look to the future, we remain focused on executing a good holiday, managing our expenses and investing to support our business plans for future years,” said Deborah Thomas, Hasbro’s chief financial officer.

Hasbro Stock Price Forecast

Eight equity analysts forecast the average price in 12 months at $94.43 with a high forecast of $104.00 and a low forecast of $74.00. The average price target represents a 13.91% increase from the last price of $82.90. From those eight analysts, seven rated “Buy”, one rated “Hold” and none rated “Sell”, according to Tipranks.

Hasbro had its stock price forecast raised by JP Morgan to $92 from $83. They currently have a neutral rating on the stock. Stifel Nicolaus upgraded shares of Hasbro from a hold rating to a buy rating and boosted their target price for the stock to $100 from $73.

Several other analysts have also recently commented on the stock. BMO Capital Markets raised shares of Hasbro from a “market perform” rating to an “outperform” rating and boosted their target price for the stock to $90 from $69. BidaskClub raised shares from a hold rating to a buy rating. At last, MKM Partners boosted their target price to $104 from $90.

Analyst Comments

“Strong POS growth for HAS in 2Q20 did not translate into revenue growth due to temporary store closures, product shortages, and retail inventory reductions. Performance should be better in 3Q20 due to: (1) reopening of production facilities outside China(45% of total); (2) a more favourable Magic the Gathering comp; (3) at least 90% of retail outlets being open globally; (4) full resumption of production at eOne in September; and (5) continuing strong industry POS,” noted equity analysts at D.A. Davidson & Company.

“We are comfortable buying the stock today and reiterate our BUY rating. Our $100 price target is under review until after the report on Monday; it is based on 21x 2021EEPS of $4.78.”

Check out FX Empire’s earnings calendar

Hasbro Breaks Down After Earnings Miss

Hasbro, Inc. (HAS) shares plunged 7.41% Monday after the toy and boardgames maker missed Wall Street’s top- and bottom-line expectations. The Rhode Island-based company reported second-quarter (Q2) adjusted earnings of 2 cents per share, falling well short of analysts’ forecast of 19 cents per share. The figure also contracted 96% from the year-ago quarter. Meanwhile, revenue of $860.3 million in the period came in below the consensus mark of $983 million and declined 29% year-over-year (YoY).

CEO Brian Goldner cited COVID-19-related disruptions to the company’s supply chain and the closures of retailers selling its toys as contributing factors to the disappointing quarterly result. Still, he sees things improving in the second half. “We believe the outlook improves from here,” Goldner told investors during the conference call, per Barron’s. The CEO also believes the reopening of the television, film, and entertainment industries position the company for a good holiday season.

As of July 28, the company has a market capitalization of $9.84 billion, offers an enticing 3.51% dividend yield, and is down 30.69% on the year. From a valuation standpoint, the stock trades at 22.37 times projected earnings, 14% above its five-year average multiple of 19.58 times.

Balance Sheet Position

Even though Hasbro’s cash position has decreased slightly from a year ago, it still has a stockpile of $1.04 billion and access to a $1.5 billion credit facility to help navigate challenges in the months ahead. The company’s long-term debt has risen to $4.8 billion from $1.7 billion, with $300 million due in May 2021.

Wall Street View

Wells Fargo analyst Timothy Conder told clients Monday that he believes the earnings and revenue miss will erase some of the stock’s recent gains. However, Street ratings indicate further upside. The stock receives 10 ‘Buy’ recommendations, 1 ‘Overweight’ recommendation, and 6 ‘Hold’ recommendations. Moreover, analysts have placed an $86.69 12-month price target on the stock, indicating a 12% upside from Monday’s $77.59 close.

Technical Outlook

After making an impressive recovery throughout March and April, Hasbro shares have oscillated within a symmetrical triangle. Yesterday’s earnings miss saw sellers rush for the gates, with price breaking down below the pattern’s lower trendline on above-average volume. Furthermore, the moving average convergence divergence (MACD) indicator crossed below its trigger line to generate a sell signal. In the weeks ahead, look for a possible test of $62.50, where price finds support from the mid-May swing low. Conversely, a reversal back to the upside could drive a move back to significant overhead resistance around $94.

Hasbro, Inc. (NASDAQ:HAS) Falls 8% On Disappointing Q1 Financial Results

Hasbro, Inc. (NASDAQ:HAS) shares fell 8% after the company reported first-quarter financial results that fell short of Wall Street expectations. The company posted a 16% decline in net revenues that came in at $716.3 million, compared to $849.7 million reported last year.

Q1 Financial Results

Net revenues in Canada and the U.S dropped 19% to $364.3 million, compared to $451.6 million reported a year earlier. The segment also reported a net operating loss of (-$23.4) million compared to an operating profit of $64.8 million, reported in the first quarter of last year. International segment revenue came in at $287.9 million compared to $345.3 million as of last year

The company recorded lower than expected revenue in the quarter partly because of a loss of revenue from Toys“R” Us in the U.S and Europe. The Toy store underwent liquidation in the quarter a move that has affected its operations in key markets.

Overall Hasbro plunged into a net loss of (-$112.5) million or $0.90 a share in the quarter, compared to net earnings of $68.6 million reported a year earlier.

Despite the Q1 disappointment, Hasbro says it is on course to generate between $600 million and $700 million in operating free cash flow before the end of the year. Operating profit margin, on the other hand, is expected to be in line with 2017 levels of 15.6%, excluding expenses associated with Toys“R” Us.

Hasbro expects the first-quarter headwind’s to be over by the end of the first half of the year. The management expects the company to bounce back to growth in 2019, having issued impressive operating margin figures for the full year.

“Hasbro brands are resonating with consumers, and consumer takeaway is positive. However, as we discussed earlier in the year, our first quarter was expected to be difficult. We are working to put the near-term disruption from Toys“R” Us behind us,” said Brian Goldner, Hasbro’s chairman and chief executive officer.

Shareholder Value Return

Hasbro paid $70.8 million in cash dividends in the first quarter further affirming its credential when it comes to the generation of shareholder value. The company has already scheduled a $0.63 dividend payment to be paid to shareholders on May 15, 2018.

In addition, the company repurchased 427,000 shares of common stock in the quarter for a total cost of $38.8 million, at an average price of $90.81 a share. The company still has about $19.2 million remaining in its current share repurchase authorization.

According to the Chief Executive Officer, the company’s financial strength is sound which should allow it to navigate the near-term challenges with ease. The first quarter revenue and profits according to the executive were negatively impacted by events that do not reflect the health of the company’s underlying health.

In a bid to reinvigorate growth in bottom line Hasbro plans to venture into media content through partnerships with the likes of Walt Disney Co (NYSE:DIS) as a way of backing the toys the business.