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Hasbro Declares Dividend of $0.51 per Share

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Price movement

Hasbro (HAS) has a market cap of $10.8 billion. It rose 0.24% to close at $86.73 per share on December 8, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 3.1%, 4.1%, and 32.0%, respectively, on the same day. HAS is trading 1.6% above its 20-day moving average, 5.1% above its 50-day moving average, and 6.4% above its 200-day moving average.

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Related ETF and peers

The WisdomTree Mid-Cap Dividend ETF (DON) invests 0.61% of its holdings in Hasbro. The YTD price movement of DON was 23.0% on December 8. The market caps of Hasbro’s competitors are as follows:

  • The Walt Disney Company (DIS) — $165.3 billion
  • Viacom (VIAB) — $15.9 billion
  • Mattel (MAT) — $10.3 billion

Hasbro declares dividend

Hasbro has declared a quarterly cash dividend of $0.51 per share on its common stock. The dividend will be paid on February 15, 2017, to shareholders of record at the close of business on February 1, 2017.

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Latest news on Hasbro

In a press release on December 8, 2016, Moody’s reported that it “upgraded Hasbro, Inc.’s senior unsecured rating to Baa1 from Baa2, senior unsecured shelf rating to (P)[1. provisional]Baa1 from (P)Baa2, and subordinate shelf rating to (P)Baa2 from (P)Baa3. The rating of the company for commercial paper was affirmed at Prime-2. The outlook is stable.”

According to Linda Montag, Moody’s senior vice president, “The upgrade reflects Hasbro’s solid financial metrics and our expectation that the company will sustain strong operating momentum after years of repositioning its strategy to emphasize owned and controlled brands. We expect Hasbro will continue to successfully engage consumers through product innovation, storytelling and entertainment.”

Performance in fiscal 3Q16

Hasbro reported fiscal 3Q16 net revenue of $1.7 billion, a rise of 14.3% over  the net revenue of $1.5 million reported in fiscal 3Q15. Net revenue from the boys, games, and girls product categories rose 2.1%, 12.7%, and 56.7%, respectively. Net revenue from preschool products fell 7.7% between fiscal 3Q15 and fiscal 3Q16. Net revenue from the U.S. and Canada, International, and Entertainment and Licensing segments rose 16.0%, 12.7%, and 7.7%, respectively. The company’s cost of sales as a percentage of net revenue narrowed by 20 basis points. Its operating profit rose 100 basis points.

Its net income and EPS (earnings per share) rose to $257.8 million and $2.03, respectively, in fiscal 3Q16, compared with $207.6 million and $1.64 in fiscal 3Q15. It reported adjusted EPS of $2.03 in fiscal 3Q16, a rise of 28.5% from fiscal 3Q15.

Hasbro’s cash and cash equivalents and inventories rose 50.6% and 35.9%, respectively, between fiscal 3Q15 and fiscal 3Q16. Its current ratio and debt-to-equity ratio fell to 2.0x and 1.8x, respectively, in fiscal 3Q16, compared with 2.6x and 1.9x in fiscal 3Q15. In the next part, we’ll discuss Bunge Limited (BG).

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