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Hasbro and Kadam Announce a New Transformers Game

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Price movement

Hasbro (HAS) has a market cap of $10.5 billion. It fell 1.5% and closed at $84.13 per share on December 1, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -3.2%, 2.3%, and 28.0%, respectively, on the same day. Hasbro is trading 0.65% below its 20-day moving average, 2.7% above its 50-day moving average, and 3.6% 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. DON’s YTD price movement was 18.2% on December 1.

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

  • Walt Disney Company (DIS) – $159.0 billion
  • Viacom (VIAB) – $15.0 billion
  • Mattel (MAT) – $10.4 billion

Latest news 

In a press release on December 1, 2016, Kabam reported, “Kabam, a world leader of massively multiplayer mobile games for a global audience, and Hasbro Inc. today announced the title and key details of TRANSFORMERS: Forged to Fight, a new high-definition, action-fighting mobile game-set in an immersive world. The game will feature authentic Transformers “more than meets the eye” action, allowing players to engage with Optimus Prime, Megatron and many other popular Autobots and Deceptions in a stunning 3D environment. The new title will enter beta testing in select territories soon and will be available worldwide in Spring 2017.”

Performance in fiscal 3Q16

Hasbro reported fiscal 3Q16 net revenues of $1.68 billion—a rise of 14.3% compared to net revenues of $1.47 million in fiscal 3Q15. Net revenues from the boys, games, and girls products categories rose 2.1%, 12.7%, and 56.7%, respectively. Net revenues from preschool products fell 7.7% in fiscal 3Q16—compared to the same period last year.

Net revenues from the US and Canada, International, and Entertainment & Licensing segments rose 16.0%, 12.7%, and 7.7%, respectively, in fiscal 3Q16—compared to fiscal 3Q15. The company’s cost of sales as a percentage of net revenues narrowed by 20 basis points. Its operating profit rose by 100 basis points, respectively, in fiscal 3Q16—compared to the same period last year.

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

Hasbro’s cash and cash equivalents and inventories rose 50.6% and 35.9%, respectively, in fiscal 3Q16—compared to fiscal 3Q15. Its current ratio and debt-to-equity ratio fell to 2.0x and 1.8x, respectively, in fiscal 3Q16—compared to 2.6x and 1.9x, respectively, in fiscal 3Q15.

In the next part, we’ll discuss Reynolds American (RAI).

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