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Why Did Hasbro Fall ~2% Intraday?

Yesterday’s Consumer Drops: HRL, ADM, HAS, and MAT

(Continued from Prior Part)

Price movement

Hasbro (HAS) has a market cap of $9.8 billion. It fell by 2.4% and closed at $77.80 per share on April 5, 2016. The price movements on a weekly, monthly, and YTD (year-to-date) basis were -0.55%, -0.14%, and 16.2%, respectively.

Currently, Hasbro is trading 0.81% below its 20-day moving average, 2.7% above its 50-day moving average, and 4.5% above its 200-day moving average.

The WisdomTree MidCap Dividend ETF (DON) invests 0.65% of its holdings in Hasbro. DON tracks a dividend-weighted index of mid-cap stocks. DON’s YTD price movement was 6.7% as of April 5, 2016.

The market caps of Hasbro’s competitors are as follows:

  • Walt Disney Company (DIS) – $158.7 billion

  • Viacom (VIAB) – $15.6 billion

  • Mattel (MAT) – $11.2 billion

MKM Partners rated Hasbro

Hasbro fell 2.4% after MKM Partners said, “The company’s risk-reward is not very compelling.” MKM reiterated the stock rating as “neutral” with the price target at $76 per share. The company also saw momentum during the holidays with the success of Star Wars: The Force Awakens and the launch of Walt Disney’s Princess products.

TheStreet gave Hasbro a “buy” rating and an “A+” grade.

Performance in 4Q15 and 2015

Hasbro reported fiscal 4Q15 net revenue of $1,465.4 million—a rise of 12.8% compared to net revenue of $1,298.6 million in fiscal 4Q14. The revenue of boys, games, and preschool products rose by 35.1%, 11.4%, and 17.1%, respectively. The revenue from its girls products fell by 17.2%. It reported royalties of $149.1 million in fiscal 4Q15—compared to $90.0 million in fiscal 4Q14.

Its net income and EPS (earnings per share) rose to $175.8 million and $1.39, respectively, in fiscal 4Q15—compared to $169.9 million and $1.34, respectively, in fiscal 4Q14.

Fiscal 2015 results

In 2015, Hasbro reported net revenue of $4,447.5 million—a rise of 4.0% YoY (year-over-year). The company’s cost of sales as a percentage of net revenue fell by 5.0% and its operating profit rose by 8.9% in fiscal 2015.

Its net income and EPS rose to $451.8 million and $3.57, respectively, in fiscal 2015—compared to $415.9 million and $3.20, respectively, in fiscal 2014.

Hasbro’s cash and cash equivalents and inventories rose by 9.4% and 13.2%, respectively, in fiscal 2015. Its current ratio rose to 2.7x and its DE (debt-to-equity) ratio fell to 1.8x in fiscal 2015—compared to a current ratio and a DE ratio of 2.5x and 2.1x, respectively, in fiscal 2014.

In 2015, the company gave $310.7 million to shareholders including $225.8 million in cash dividends. It declared a quarterly cash dividend of $0.51 per share on its common stock. It also repurchased 1.3 million shares at a total cost of $84.9 million and an average price of $68.01 per share.