Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

0

Why Hasbro, Inc. Stock Popped 17.4% in February

What happened

Shares of Hasbro, Inc. (NASDAQ: HAS  )  jumped 17.4% in the month of February, according to data provided by S&P Global Market Intelligence, after the toy and games specialist announced strong fourth-quarter 2016 results.

So what

Hasbro stock jumped more than 14% on Feb. 6, 2017, when the company revealed that fourth-quarter revenue grew 11% year over year, to $1.63 billion, helping the company exceed $5 billion in annual sales for the first time. On the bottom line, that translated to 17.9% growth in adjusted net income, to $207.4 million, or $1.64 per share. Both figures were well ahead of Wall Street's expectations, which called for revenue of $1.50 billion and adjusted net income of $1.27 per share.

Some of Hasbro's Disney Frozen toys from 2017.

Frozen-themed toys helped boost Hasbro's girls category in 2016, IMAGE SOURCE: HASBRO.

Perhaps most notable for the full year, Hasbro's girls category revenue climbed a whopping 50% in 2016, to $1.19 billion, thanks to shipments of its line of Disney princess and Disney Frozen fashion and small dolls, as well as a successful launch of Dreamworks' Trolls and Baby Alive products. Revenue on the boys side grew at a more modest 4% last year, to $1.85 billion, helped by strength in the company's NERF and Yo-Kai Watch brands.

Now what

Hasbro doesn't typically provide specific financial guidance. But the company did increase its quarterly dividend by 12%, to $0.57 per share, noting it exited 2016 with strong momentum and well positioned to execute against a strong plan for the coming year.

In particular, Hasbro looks forward to taking advantage of its partnerships to capitalize on a number of promising cinematic releases in 2017, including Disney's Beauty and the Beast in March, Guardians of the Galaxy Vol. 2 in May, Spider Man: Homecoming in July, and Thor: Ragnarok next November. What's more, Hasbro should benefit from increased visibility of its own brands through the releases of Transformers: The Last Night in June, and My Little Pony: The Movie, in October.

All in all, there was little not to like about Hasbro's performance as it capped 2016, and plenty that investors can look forward to this year. Even with shares trading near all-time highs, Hasbro stock has plenty of room to run going forward.

10 stocks we like better than Hasbro
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Hasbro wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 6, 2017


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 4007269, ~/Articles/ArticleHandler.aspx, 3/27/2017 2:25:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
Change down DOW 20550.0 -46.7 -0.2%
Change down S&P 500 2338.7 -5.3 -0.2%
Change up NASD 5836.7 8.0 0.1%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

3/27/2017 2:08 PM
HAS $99.12 Down -0.85 -0.85%
Hasbro CAPS Rating: ****

Advertisement