Hasbro (HAS) jumped 12.24% after the play and entertainment company reported better-than-expected second-quarter results. Revenues came in at $1.3 billion, representing a 54% increase from a year ago and topped consensus estimates of $1.2 billion. Growth was driven by a 33% revenue increase in the consumer products division.
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Net earnings came in at $145.4 million, or $1.05 per diluted share, better than the $0.48 a share that analysts expected. Hasbro ended the quarter with $1.2 billion in cash and six-month operating cash flow of $577.1 million. (See Hasbro stock charts on TipRanks)
According to CEO Brian Goldner, the team is doing exceedingly well. Demand for brands and content remains high. Consequently, the executive expects “double-digit” revenue growth for the full year.
“As we invest to unlock value from our brands across the blueprint, we are on track to reach our objectives for the year while expanding the reach of our business, reducing debt and paying our dividend,” said CFO Deborah Thomas.
Before the Q2 release, BMO Capital analyst Gerrick Johnson reiterated a Hold rating on the stock with a $90 price target, implying 13.2% downside potential to current levels. According to the analyst, rising shipping/supply bottlenecks could pose significant danger compounded by rising inputs and labor shortages.
Consensus among analysts is a Strong Buy based on 5 Buys and 1 Hold. The average Hasbro price target of $108.67 implies 4.77% upside potential to current levels.
HAS scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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