Hasbro Q2 Results = Huge Stock Gains

Posted by Bret on 07/23/18 at 04:35 PM Category: Hasbro

At the close of business on Monday, Hasbro stock (HAS) was up almost 13%, closing at 106.04, it's highest closing price in the past year.

Hasbro reported their second quarter earnings, and the news was mixed for the company. While the numbers are down from the same time last year, they are much better than were expected by most analysts, meaning that Hasbro seems to be weathering the retail storm fairly well.

According to Chief Executive Officer Brian Goldner:

2018 is unfolding as expected as our teams manage the liquidation of Toys 'R' Us in many markets and address the rapidly evolving European retail landscape. Consumer takeaway is up for our brands, and we further strengthened our brand portfolio through the acquisition of POWER RANGERS.

He also said:

We are focused on moving beyond the near-term disruption of losing a major customer, with a clear path forward including new retailer activations to meet the consumer demand made available by the Toys 'R' Us departure.

Hasbro's numbers were down, but still way up from expectations, which is why investors jumped on the stock today.

Net earnings dropped to $0.48 cents per share from $0.53 per share a year earlier, but analysts expected earnings of only $0.29 cents per share.

Revenue fell 7% to $904.5 million, but analysts expected revenue to be only $833.1 million.

Hasbro was very much stronger this quarter than almost anyone expected, and as the Toys R Us closure passes further into history, Hasbro will try to be positioned to come out of it stronger.

Read more at CNBC.