Hasbro (HAS) closed the most recent trading day at $60.54, moving +0.26% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.52%.Heading into today, shares of the toy maker had lost 12.57% over the past month, lagging the Consumer Discretionary sector's loss of 8.41% and the S&P 500's loss of 7.33% in that time.Investors will be eagerly watching for the performance of Hasbro in its upcoming earnings dis ...

The Zacks Toys - Games – Hobbies industry benefits from the robust demand for smart toys, STEM (science, technology, engineering and math) toys, sports toys, and fashion dolls and accessories. Industry participants have been undertaking efforts on the digital front and focusing on better execution of marketing and promotional initiatives to drive growth. Stocks like Hasbro, Inc. (HAS) and Mattel, Inc. (MAT) are likely to gain from these trends.Industry Description The Zacks Toys - Games – Hobbies industry c ...

Hasbro (HAS) closed at $59.79 in the latest trading session, marking a +0.83% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 2.13% for the day. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 2.61%.Prior to today's trading, shares of the toy maker had lost 1.58% over the past month. This has was narrower than the Consumer Discretionary sector's loss of 12.53% and the S&P 500's loss of 9.57% in that time.Investors will be eagerly watching for the p ...

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]

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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]