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How Did Hasbro’s 2Q16 Earnings Turn Out?

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Price movement

Hasbro (HAS) has a market cap of $9.9 billion. It fell by 6.6% to close at $79.82 per share on July 18, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -6.6%, -7.1%, and 20.0%, respectively, on the same day. HAS is trading 5.4% below its 20-day moving average, 6.4% below its 50-day moving average, and 3.3% above its 200-day moving average.

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Related ETF and peers

The WisdomTree Mid-Cap Dividend ETF (DON) invests 0.65% of its holdings in Hasbro. The ETF tracks a dividend-weighted index of midcap stocks. The YTD price movement of DON was 15.3% on July 18.

The market caps of Hasbro’s competitors are as follows:

  • Walt Disney Company (DIS) — $162.8 billion
  • Viacom (VIAB) — $18.1 billion
  • Mattel (MAT) — $11.1 billion

Performance of Hasbro in fiscal 2Q16

Hasbro reported fiscal 2Q16 net revenues of $878.9 million, a rise of 10.2% compared to net revenues of $797.7 million in fiscal 2Q15. Net revenues from boys, games, girls, and preschool products categories rose by 4.3%, 7.6%, 35.2%, and 4.9%, respectively, in fiscal 2Q16, compared to the prior-year period.

Net revenues from the US and Canada, International, and Entertainment & Licensing segments rose by 10.6%, 10.6%, and 8.9%, respectively, in fiscal 2Q16 compared to fiscal 2Q15. The company’s cost of sales as a percentage of net revenues fell by 1.1%, and its operating profit rose 12.5%, respectively, in fiscal 2Q16, compared to fiscal 2Q15.

Its net income and EPS (earnings per share) rose to $52.1 million and $0.41, respectively, in fiscal 2Q16 compared to $41.8 million and $0.33, respectively, in fiscal 2Q15.

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Hasbro’s cash and cash equivalents and inventories rose by 7.6% and 41.8%, respectively, in fiscal 2Q16 compared to fiscal 2Q15. Its current ratio rose to 3.4x, and its debt-to-equity ratio fell to 1.7x in fiscal 2Q16, compared to a current ratio and a debt-to-equity ratio of 2.9x and 1.9x, respectively, in fiscal 2Q15.

During fiscal 2Q16, the company repurchased 270,611 shares of its common stock worth $21.9 million at an average price of $81 per share. There are still $421.5 million available under the current share repurchase authorization.

Quarterly dividend

Hasbro has declared a quarterly cash dividend of $0.51 per share on its common stock. The dividend will be paid on August 15, 2016, to shareholders of record at the close of business on August 1, 2016.

Next, we’ll discuss Monster Beverage Corporation.

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