Core Viewpoint - Hasbro is set to report earnings that indicate potential growth, but the stock has underperformed compared to broader market indices recently [1][2][3]. Group 1: Stock Performance - Hasbro's stock closed at $59.79, reflecting a +0.83% change from the previous day, which is lower than the S&P 500's gain of 2.13% [1]. - Over the past month, Hasbro's shares have decreased by 1.58%, which is less severe than the Consumer Discretionary sector's decline of 12.53% and the S&P 500's drop of 9.57% [1]. Group 2: Earnings Projections - Hasbro is projected to report earnings of $0.71 per share, representing a year-over-year growth of 16.39% [2]. - The consensus estimate for Hasbro's revenue is $775.46 million, indicating a 2.4% increase from the same quarter last year [2]. - Full-year estimates suggest earnings of $4.22 per share and revenue of $4.17 billion, reflecting year-over-year changes of +5.24% and +0.78%, respectively [3]. Group 3: Analyst Forecasts and Rankings - Recent revisions to analyst forecasts for Hasbro are crucial as they indicate changing business trends, with positive revisions suggesting confidence in the company's performance [4]. - The Zacks Rank system currently rates Hasbro at 4 (Sell), with a recent decline of 2.35% in the consensus EPS estimate over the past month [6]. Group 4: Valuation Metrics - Hasbro's Forward P/E ratio stands at 14.05, which is higher than the industry average of 11.58 [7]. - The company has a PEG ratio of 2.09, compared to the industry average PEG ratio of 2.11 [8]. Group 5: Industry Context - The Toys - Games - Hobbies industry, part of the Consumer Discretionary sector, ranks 190 out of over 250 industries, placing it in the bottom 25% [9].

Core Viewpoint - The investment outlook for Hasbro Inc. (NASDAQ: HAS) is positive, with potential to reach the high end of its FY24 guidance and a price target set at $74 [1] Group 1: Investment Strategy - The investment approach focuses on long-term investments while also incorporating short-term shorts to identify alpha opportunities [1] - The analysis is based on a bottom-up approach, examining the fundamental strengths and weaknesses of individual companies [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Core Insights - The articles emphasize that the opinions expressed are personal and do not constitute investment advice, highlighting the importance of conducting independent research before making investment decisions [1][3][4] Group 1 - The articles mention that the author has a beneficial long position in the shares of HAS, indicating a personal investment interest [2] - It is noted that the author is not receiving compensation for the article, which may suggest an unbiased perspective [2] - The content is framed as opinion pieces, reinforcing that the views may change without notice [1][3] Group 2 - The articles clarify that past performance does not guarantee future results, which is a standard disclaimer in investment discussions [4] - There is a mention that Seeking Alpha does not act as a licensed securities dealer or investment adviser, indicating the platform's role as a content provider rather than a financial advisor [4] - The authors of the articles include both professional and individual investors, which may affect the diversity of opinions presented [4]

Revenue Performance - Consolidated net revenues for the year ended December 29, 2024, decreased 17.3% to $4,135.5 million from $5,003.3 million for the year ended December 31, 2023, primarily due to an 88% decline in the Entertainment segment[201]. - The Franchise Brands portfolio net revenues decreased 4% in 2024 compared to 2023, driven by lower revenues from NERF, DUNGEONS & DRAGONS, and TRANSFORMERS products[203]. - Partner Brands net revenues decreased 15% in 2024 compared to 2023, primarily due to lower revenues from STAR WARS and MARVEL products[204]. - Portfolio Brands net revenues decreased 17% in 2024 compared to 2023, mainly driven by lower revenues from POWER RANGERS, PJ MASKS, and BABY ALIVE products[205]. - Total net revenues decreased by 17% to $4,135.5 million in 2024 from $5,003.3 million in 2023[226]. - Consumer Products segment net revenues decreased by 12% to $2,543.9 million in 2024, primarily due to exited businesses and lower sales from key brands[227]. - Wizards of the Coast and Digital Gaming segment net revenues increased by 4% to $1,511.3 million in 2024, with a 22% increase in digital and licensed gaming[230]. - Entertainment segment net revenues plummeted by 88% to $80.3 million in 2024, largely due to the sale of the eOne Film and TV business[232]. Profitability and Earnings - Net earnings attributable to Hasbro, Inc. for 2024 were $385.6 million, compared to a loss of $1,489.3 million in 2023[200]. - Basic net earnings per common share for 2024 were $2.77, compared to a loss of $10.73 per share in 2023[200]. - Operating profit for the total company improved to $690.0 million in 2024 from an operating loss of $1,538.8 million in 2023[226]. - Total comprehensive earnings for 2024 were $340.7 million, compared to a loss of $1,435.9 million in 2023[291]. Costs and Expenses - Cost of sales decreased 30.9% to $1,179.5 million, or 28.5% of net revenues, for 2024 compared to $1,706.0 million, or 34.1% of net revenues, for 2023[208]. - Selling, distribution, and administration expenses decreased to $1,213.2 million, or 29.3% of net revenues in 2024, from $1,480.4 million, or 29.6% in 2023[217]. - Total costs and expenses for 2024 were $3,445.5 million, down from $6,542.1 million in 2023[288]. - Interest expense totaled $171.2 million in 2024, down from $186.3 million in 2023, primarily due to lower average outstanding borrowings[218]. - Interest income increased to $47.3 million in 2024 from $23.0 million in 2023, reflecting higher average interest rates and investments in short-term treasury bills[220]. - Other expense, net rose to $69.1 million in 2024 from $7.0 million in 2023, driven by an impairment loss of $78.2 million related to a joint venture investment[221]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased to $847.4 million in 2024 from $725.6 million in 2023, attributed to improved net earnings and lower investments in entertainment content[250]. - Cash and cash equivalents as of December 29, 2024, were $695.0 million, while long-term debt stood at $3,401.8 million[243]. - Net cash utilized for investing activities was $203.7 million in 2024, primarily due to $571.0 million in purchases of short-term investments[251]. - Financing activities resulted in a net cash outflow of $497.5 million in 2024, including $498.6 million from the issuance of senior unsecured debt securities[253]. - The company expects total cash capital expenditures in fiscal year 2025 to be between $225 million and $250 million[252]. Assets and Liabilities - Current assets decreased from $2,323.6 million in 2023 to $2,242.5 million in 2024, primarily due to changes in inventories and prepaid expenses[284]. - Total liabilities decreased from $5,453.9 million in 2023 to $5,155.3 million in 2024, reflecting a reduction in current liabilities[284]. - The Company’s long-term debt increased from $2,965.8 million in 2023 to $3,380.8 million in 2024, indicating a rise in financial leverage[284]. - The Company’s retained earnings increased from $2,188.4 million in 2023 to $2,274.2 million in 2024, showing positive growth in accumulated profits[284]. Strategic Initiatives and Market Conditions - The company completed the sale of its Entertainment One film and television business to Lionsgate on December 27, 2023, as part of its strategic realignment[303]. - The bankruptcy of significant retailers could negatively impact the Company's future revenues, highlighting the importance of retail partnerships[266]. - The Company is actively managing inventory levels to mitigate the risk of obsolescence and ensure adequate supply of new products[265]. - The Company continues to monitor consumer purchase patterns to adapt its inventory management strategies effectively[265]. - The company experienced significant inflation impacts during 2024, which may necessitate future price adjustments to mitigate operational costs[268]. Intellectual Property and Development - The company retains all Hasbro-branded content and will continue to develop and produce animation, digital shorts, scripted TV, and theatrical films related to core Hasbro IP following the sale of non-Hasbro branded productions[335]. - The company capitalizes costs related to the production of digital content and amortizes them using the individual-film-forecast method, with ultimate revenue estimates reviewed periodically[335]. - The company recognizes revenues from in-application purchases based on player usage patterns or estimated player life, with revenues from subscription services recognized ratably over the subscription term[333]. - The company enters into contracts to license its intellectual property, with revenues recorded based on sales-based or usage-based royalties, or minimum guarantees[329]. Miscellaneous - The company had a liability of $45.6 million for potential tax, interest, and penalties related to uncertain tax positions as of December 29, 2024[264]. - The company had fixed-rate long-term debt of $3,401.8 million as of December 29, 2024, with no interest rate swaps in place[262]. - Major customers, Wal-Mart and Amazon, accounted for 12% and 11% of consolidated net revenues in 2024, respectively, maintaining similar percentages from previous years[369].

Core Viewpoint - J.P. Morgan analyst Christopher Horvers maintains an Overweight rating on Hasbro Inc (HAS) with a price target of $75.00, citing strong fourth-quarter performance and optimistic outlook for 2025 [1][8]. Financial Performance - HAS exceeded street expectations for the fourth quarter, driven by strong performance in Consumer Products and Wizards, with operating income 15% above Consensus Metrix [1]. - The 2025 guidance projects EBITDA of $1.1-$1.15 billion, slightly below the consensus of $1.143 billion, aligning with the analyst's expectations [2]. Growth Drivers - Management expressed optimism for sales growth in Wizards and Consumer Products, which was initially expected to underperform [3]. - The outlook for Magic is strengthened by contributions from Final Fantasy and Spider-Man, alongside a turnaround in the Consumer Products business due to a favorable movie slate and affordable product range [4]. Cost Management and Future Projections - Ongoing cost-saving measures, including design-to-value and corporate efficiencies, are expected to make the 2025 forecast achievable [5]. - Management projects EBITDA of approximately $1.4 billion in 2027, exceeding the consensus estimate of $1.3 billion [5]. Market Positioning - The analyst believes consensus estimates for cost efficiency and digital gaming are too conservative, with expectations for growth heading into 2025 [6]. - Retailers, particularly Target Corp, are focusing on driving traffic through events, with toys playing a crucial role in their strategy [7]. Strategic Initiatives - By the end of 2025, the full impact of HAS's $750 million cost-reduction initiative is anticipated, with the consumer products segment benefiting from increased innovation and growth in Magic: The Gathering driven by its Universes Beyond strategy [7].

Core Insights - Basic Fun! has entered a worldwide licensing agreement with Hasbro to manufacture and distribute products under the STRETCH ARMSTRONG brand, which has been iconic for nearly 50 years [1][4] - The new STRETCH ARMSTRONG toys will feature super-stretchy figures with a unique "Power Plasma" filling, allowing them to stretch up to five times their size and return to their original form [3][5] - The first STRETCH ARMSTRONG toys are expected to be available at retailers globally starting in fall 2025 [2][3] Company Overview - Basic Fun! is a global designer and marketer of toys and consumer products, with a presence in over 60 countries and partnerships with more than 2,500 retailers [6] - The company aims to create memorable experiences through imaginative play and has a diverse portfolio of iconic brands [6] - Hasbro, with over 100 years of experience, focuses on creating joy and community through play, offering a wide range of products including toys, games, and licensed consumer products [7][8]

Group 1 - The Value Lab focuses on long-only value investment ideas, aiming for a portfolio yield of about 4% and has performed well over the last five years by engaging in international markets [1][2] - Hasbro (NASDAQ: HAS) was previously on the radar for investment but has recently disappointed due to missed opportunities after hitting local lows around Christmas [2] - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are downside limited and expected to generate non-correlated and outsized returns in the current economic environment [3]

Core Insights - Hasbro is implementing a new strategy called "Playing to Win" to return to growth, focusing on video games, services, and eCommerce as key components [1][2] - The company reported a 17% decline in full-year 2024 revenue, primarily due to the divestiture of its eOne film and television business, with a 7% decline when excluding this impact [2] Strategy Overview - The "Playing to Win" strategy consists of five pillars: digital and direct initiatives, focusing on profitable play-focused brands, increasing collectible appeal for consumers aged 13 and above, reaching emerging markets, and expanding retail and licensing partnerships [3] - Hasbro aims to increase its reach from 500 million to 750 million kids, families, and fans by 2027, while pursuing transformational initiatives such as modernizing systems and optimizing the supply chain [4] Financial Projections - The company projects modest revenue growth in 2025, with continued margin expansion, and anticipates a mid-single digit revenue CAGR through 2027, driven by new toy innovations and digital investments [5]

Core Insights - Hasbro's stock surged 13.2% after significantly exceeding analyst expectations for sales and earnings, reporting earnings of $0.46 per share and sales of $1.1 billion, compared to expectations of $0.35 per share and just over $1 billion in sales [1][2] Financial Performance - Despite beating estimates, Hasbro experienced a 15% year-over-year decline in sales, primarily due to the divestiture of its eOne media and production business, while its Wizards of the Coast subsidiary saw a 7% sales decrease [2] - On a GAAP basis, Hasbro reported a loss of $0.25 per share for the quarter, with a full-year sales decline of 17%, although Wizards of the Coast achieved a 4% sales growth, and full-year earnings were positive at $2.75 per share [3] Future Outlook - Hasbro provided updated guidance, forecasting an end to revenue declines with slight revenue growth in constant currency, and projected adjusted EBITDA between $1.1 billion and $1.15 billion for the coming year [4] - If Hasbro meets its targets and achieves earnings of $5.50 per share, the current share price of $70 would reflect a price-to-earnings valuation of 12.7x, which is considered attractive compared to Wall Street's forecasts for 2025 earnings [5]

Core Insights - Hasbro reported stronger-than-expected earnings growth despite a revenue decline, indicating profitability improvements and a better-than-anticipated earnings per share (EPS) [1][2] - The adjusted EPS was $0.46, exceeding the expected $0.35 by 31.4%, while revenue was $1.10 billion, above the estimate of $1.035 billion but down 15% year-on-year [2][3] Financial Performance - Adjusted EPS for Q4 2024 was $0.46, a 21% increase from $0.38 in Q4 2023 [3] - Revenue decreased to $1.10 billion from $1.29 billion in Q4 2023, reflecting a 15% year-on-year decline [3] - The adjusted operating margin improved to 10.2%, up 14.1 percentage points from a negative 3.9% in the previous year [3] - Net earnings (adjusted) rose to $64.3 million, a 23% increase from $52.3 million in Q4 2023 [3] Business Overview - Hasbro is a leader in toy and board game manufacturing, with a diverse portfolio including brands like Magic: The Gathering, Dungeons & Dragons, and Monopoly [4] - The company is focusing on its Blueprint 2.0 initiative, which emphasizes operational efficiency, profitability through core brands, and a digital-first approach [5][6] Segment Performance - The Wizards of the Coast and Digital Gaming division saw a 20% rise in operating profit, despite a 7% revenue dip due to a slower release cycle [7] - The Consumer Products sector experienced a 12% annual revenue decline but improved its operating margin to 6.0% through cost-control measures [8] - The Entertainment division faced an 88% revenue drop due to the eOne divestiture, but the adjusted operating margin increased to 61.4% [9] Financial Health - Hasbro reduced its debt by $83 million to $3.38 billion and generated $587.6 million from operating activities, reflecting a focus on maintaining healthy cash flow [10] - The quarterly dividend of $0.70 per share remained unchanged, indicating a commitment to shareholder returns [10] Future Outlook - Management projects slight revenue growth in 2025, with an adjusted operating margin of 21%-22% and adjusted EBITDA expected between $1.1 billion and $1.15 billion [12] - The company aims to leverage strengths in gaming and digital channels, focusing on consumer engagement through direct platforms and digital offerings [13]