What Does Hasbro’s Newly Added Risk Factor Tell Investors?

Hasbro (HAS) is a multinational toys and games company based in Rhode Island. It provides a range of brand experiences through consumer products like toys and games, entertainment through its Read More... The post What Does Hasbro’s Newly Added Risk Factor Tell Investors? appeared first on TipRanks Financial Blog.

What Does Hasbro’s Newly Added Risk Factor Tell Investors?

Hasbro () is a multinational toys and games company based in Rhode Island. It provides a range of brand experiences through consumer products like toys and games, entertainment through its independent studio eOne, and tabletop and digital games.

Let’s take a look at the company’s latest financial performance, corporate developments, and newly added risk factor. (See Hasbro stock charts on TipRanks).

Hasbro’s Q2 Financial Results

The company reported revenue of $1.32 billion for Q2 2021, representing a 54% year-over-year increase, and exceeded consensus estimates of $1.17 billion. Revenue increased across all of Hasbro’s business units, with its Wizards segment leading the way with more than 100% year-over-year revenue growth. The company posted Q2 adjusted EPS of $1.05, compared to $0.02 in the same quarter last year, and the consensus estimate of $0.48. 

For full-year 2021, the company said it was on track to achieve double-digit revenue growth. The company further said it is focused on reducing debt and expanding the reach of its business.

Hasbro ended Q2 with $1.23 billion in cash after funding $94.1 million in quarterly dividend distributions and repaying $250 million in debt. The company plans to make another quarterly dividend distribution on November 15.

Hasbro’s Corporate Developments

The company completed the sale of eOne Music, a unit of its eOne brand, at the beginning of Q3. The transaction generated $397 million in proceeds. It used the money to reduce its debt by an additional $100 million in early Q3.

Further, on September 15, Hasbro said it redeemed $300 million of its notes due in November 2022.

Hasbro’s Risk Factors

The new TipRanks Risk Factors tool reveals 37 risk factors for Hasbro. Since Q4 2020, the company has updated its risk profile with one new risk factor under the Finance and Corporate category.

Hasbro tells investors that its actual results for 2021 may differ significantly from those expected. It also highlighted the potential adverse effects of concentrating its manufacturing operations in China. It further said that the bankruptcy of any of its significant retailers could have a material adverse impact on its results.

The majority of Hasbro’s risk factors fall under the Tech and Innovation category, with 22% of the total risks. That is above the sector average of 12%. Hasbro’s shares have gained less than 1% since the beginning of 2021.

Analysts’ Take On Hasbro Stock

Following Hasbro’s Q2 results, D.A. Davidson analyst Linda Bolton Weiser reiterated a Buy rating on Hasbro stock and raised the price target to $128 from $120. Weiser’s new price target suggests 35.72% upside potential.

Consensus among analysts is a Moderate Buy based on 5 Buys and 3 Holds. The average Hasbro price target of $113.63 implies 20.49% upside potential to current levels.

Related News:
Sonic Automotive to Acquire RFJ Auto Partners; Shares Rise 2.3%
Goodyear to Switch to Renewable Energy for European & Turkish Plants
Horizon Bancorp Hikes Quarterly Dividend by 15.4%

The post What Does Hasbro’s Newly Added Risk Factor Tell Investors? appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

What's Your Reaction?

like
0
dislike
0
love
0
funny
0
angry
0
sad
0
wow
0

Next Article

H.B. Fuller Tops Q3 Revenue Estimates; Shares Pop 2.7% After-Hours

Shares of adhesives manufacturing firm H.B. Fuller Co. (FUL) jumped 2.7% in extended trade on Wednesday after the company reported better-than-expected revenues for the fiscal third quarter ended August 28. Read More... The post H.B. Fuller Tops Q3 Revenue Estimates; Shares Pop 2.7% After-Hours appeared first on TipRanks Financial Blog.

H.B. Fuller Tops Q3 Revenue Estimates; Shares Pop 2.7% After-Hours

Shares of adhesives manufacturing firm H.B. Fuller Co. (FUL) jumped 2.7% in extended trade on Wednesday after the company reported better-than-expected revenues for the fiscal third quarter ended August 28.

Minnesota-based H.B. Fuller is engaged in the formulation, production and sale of adhesives, sealants and other specialty chemical products.

Net revenue increased 20% year-over-year to $827 million, beating the Street’s estimate of $797.48 million. Adjusted earnings per share (EPS) rose 4% year-over-year to $0.79 and came in line with analysts’ expectations.

The President and CEO of H.B. Fuller, Jim Owens, said, “H.B. Fuller delivered another strong quarter with double-digit organic revenue growth as we gained share in key market segments through innovative solutions, improved pricing and took decisive actions to secure raw materials and meet customer demand.”

The company ended the quarter with cash and equivalents of $68 million and total debt of $1.66 billion. (See H.B. Fuller stock chart on TipRanks)

Notably, H.B. Fuller has raised the revenue guidance for Fiscal Year 2021 and now expects revenue to grow by 17% to 18% year-over-year. Adjusted EBITDA is likely to range from $460 million to $470 million. Moreover, for the fiscal fourth quarter, the company projects revenue growth of 15% to 17% compared to the year-ago quarter.

“We have implemented $225 million of annualized pricing adjustments this year and recently announced additional price increases and a surcharge on global shipments effective September 1, 2021. We anticipate a significant improvement in margins in the fourth quarter as a result of these actions,” Owens added.

Two months ago, Robert W. Baird analyst Ghansham Panjabi reiterated a Buy rating on the stock with a price target of $72 (19.2% upside potential). The analyst had expected the company to report earnings per share (EPS) of $0.93 in the third quarter.

Overall, the stock has a Moderate consensus rating based on 2 Buys and 2 Holds. The average H.B. Fuller price target of $73.25 implies 21.2% upside potential. Shares have gained 31% over the past year.

Related News:
Compass to Snap Up First Alliance Title; Shares Rise 3.1%
Facebook Halts Content Licensing Talks in Australia – Report
Blink Charging Bags Cooperative Purchasing Contract from Sourcewell; Shares Jump

The post H.B. Fuller Tops Q3 Revenue Estimates; Shares Pop 2.7% After-Hours appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.