Company Performance - Hasbro's stock closed at $52.49, reflecting a -1.61% change from the previous session, underperforming the S&P 500's loss of 0.17% [1] - Over the past month, Hasbro's shares have depreciated by 11.41%, compared to a 6.68% loss in the Consumer Discretionary sector and a 3.94% loss in the S&P 500 [1] Upcoming Earnings Report - Hasbro is scheduled to release its earnings on April 24, 2025, with projected earnings of $0.73 per share, indicating a year-over-year growth of 19.67% [2] - The consensus estimate for revenue is $769.7 million, representing a 1.64% increase compared to the same quarter of the previous year [2] Annual Forecast - Zacks Consensus Estimates forecast earnings of $4.16 per share and revenue of $4.15 billion for the year, reflecting changes of +3.74% and +0.38% respectively compared to the previous year [3] - Recent revisions to analyst forecasts are crucial as they reflect near-term business trends, with positive alterations indicating analyst optimism [3] Valuation Metrics - Hasbro's Forward P/E ratio is currently 12.84, which is a premium compared to the industry average Forward P/E of 8.95 [6] - The company has a PEG ratio of 1.91, while the average PEG ratio for Toys - Games - Hobbies stocks is 1.78 [7] Industry Context - The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector and currently holds a Zacks Industry Rank of 204, placing it in the bottom 18% of all industries [8] - The Zacks Industry Rank evaluates the performance of industry groups, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - The U.S. toy industry is facing significant challenges due to increased tariffs imposed by President Trump, with a 10% baseline tariff affecting nearly all countries and much higher tariffs on China (54%) and Vietnam (46%) [3][5][6] - The tariffs are expected to lead to substantial price increases for consumers, with estimates suggesting potential hikes of 35% to 50% on toys [8][9] - Major toy companies like Hasbro and Mattel are already experiencing stock declines, with Mattel shares dropping over 16.5% and Hasbro losing more than 12% following the tariff announcements [7] Industry Impact - Approximately 77% of toys imported into the U.S. come from China, with Vietnam being a significant secondary source [4] - The tariffs are causing toy companies to scramble for solutions, including potential production shifts to other countries, but these alternatives are also facing tariffs [5][6] - Analysts predict that companies will attempt to renegotiate contracts and alter packaging to mitigate costs, but ultimately, consumers will bear the burden of the increased tariffs [7][8] Consumer Effects - The Toy Association anticipates that price hikes will align with the back-to-school season, disproportionately affecting lower-income consumers [9] - The industry's profit margins are already thin, making it difficult for companies to absorb the tariff costs without passing them on to consumers [8]

Shares of Hasbro (HAS -12.36%), Mattel (MAT -16.36%), and Funko (FNKO -17.94%) were getting crushed today as investors reacted to President Donald Trump's announcement of reciprocal tariffs last night.Consumer discretionary stocks are getting hit especially hard since many of these products are imported from abroad, and consumers don't need to buy them. Toys are an especially discretionary category so it wasn't surprising to see shares of Hasbro, Mattel, and Funko all falling sharply today.The S&P 500 finis ...

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 ...

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].