Hasbro, Inc. (Nasdaq: HAS) Beats Street – Shares at New Highs

Hasbro, Inc. – Nasdaq: HAS

Hasbro, Inc. shares are up over 12% in the pre-market after the company announced earnings that were better than expected. Adjusted earnings for the 4th quarter were posted at $1.64 – beating street estimates of $1.27; revenues were reported at $1.63 billion versus the street estimate of $1.5 billion. Year-on-year, quarterly EPS grew from $1.52 from $1.39 and revenues grew from $175.8 million to $192.7 million. For the first time in its history, Hasbro announced annual revenues of more than $5 billion. Volumes for HAS, traded on the Nasdaq, are moderate in the pre-market.

Hasbro designs, develops, manufactures, and sells products and services globally to children and families. Their product offerings include toys, games, electronics, and fashion. Hasbro owns such iconic brand names such as Monopoly, NERF, Play-Doh, Trivial Pursuit, and Twister. The company also produces and sells television programming that feature its brands. Hasbro is headquartered in Pawtucket, RI and was formed in 1923.

Deborah Thomas, Hasbro’s Chief Financial Officer stated in a press release “Looking ahead, we are very well positioned to support our business. We continue investing in our industry-leading brands, our differentiated capabilities around the Brand Blueprint and in our systems to support long-term, cost efficient business growth. We ended the year with $1.28 billion in cash, inventories in line with last year, and we paid out $400 million to shareholders through dividends and share repurchases.”

Speculation has been around for some time that Hasbro may merge, or acquire, its long-time rival Mattel (Nasdaq: MAT). Unlike Hasbro, Mattel’s reported 4th quarter earnings disappointed investors, $0.52 versus estimates of $0.71, revenues down over 8%, and sent shares down over 15% in a day. Mattel has an impressive portfolio of iconic brands as well – Barbie, Disney Classics, Toy Story, WWE wrestling, Hot Wheels, and Fischer-Price to name a few. A merger between the two would create a company capable of rivaling Disney. Hasbro’s cash position enables then to approach Mattel again but industry insiders wonder if other players, such as Disney (NYSE: DIS), may enter the scene and set off a bidding war. Regardless, Hasbro has shown that it has the vision, management expertise, and ability to execute in a tough sector.

At least nine firms rate HAS shares. All rate HAS as a “Hold” with a consensus price target of $88. HAS shares are currently trading at nine year highs. Meanwhile MAT shares are followed by twelve firms and interestingly, nine of them rate MAT as a “Strong Buy” with five rating the shares as a “Hold”. MAT shares are trading around 40% off their recent high levels.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Ticker Symbol HAS
Last Price a/o 9:12 AM EST  $                    92.87
Average Volume                        1,390
Market Cap (mlns)  $            10,290.00
Sales (mlns) $4,860.00
Shares Outstanding (mlns) 124.5
Share Float (mlns) 111.85
Shortable Yes
Optionable Yes
Inside Ownership 10.03%
Short Float 6.92%
Short Interest Ratio 5.56
Quarterly Return 2.57%
YTD Return 6.88%
Year Return 11.57%