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.

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