On October 22, toymaker Hasbro (HAS) announced disappointing results for the third quarter of fiscal 2018.[1. The fiscal third quarter ended on September 30.] After the announcement, we saw a few price revisions, and we expect more in the coming days.
Some of the analysts include Barclays, D.A. Davidson, and Stifel. Barclays reduced its price target for Hasbro to $105 from $117. D.A. Davidson slashed its price target to $112 from $124. On October 23, Stifel lowered its price target to $102 from $106.
Currently, analysts’ 12-month average target price for HAS stock is $108.08, which reflects a 13.8% upside to its price on October 22. About 67% of the 15 analysts covering HAS have rated the stock a “buy,” while 27% have rated it a “hold.” The rest have rated it a “sell.”
Hasbro’s net revenue of $1.57 billion and adjusted EPS of $1.93 fell short of analysts’ consensus estimates of $1.71 billion for revenue and $2.23 for adjusted EPS.
Year-over-year, its revenue plummeted 12%. The company continues to suffer due to the Toys “R” Us bankruptcy. The rise in e-commerce and inventory clearance woes also remain a drag on its European operations. The foreign exchange headwind reduced its overall top line by $32 million in the third quarter.
Hasbro is expanding its presence, especially in emerging markets. It’s also focusing on digital gaming, including immersive experiences and product innovation.
Where do other toymakers stand?
Of the five analysts covering Jakks Pacific (JAKK) stock, 75% have rated it a “hold,” and the rest have rated it a “buy.” The stock’s 12-month average target price is $2.56, which reflects an 8.5% upside as of October 22.
Of the 20 analysts covering Take-Two Interactive Software (TTWO) stock, 85% have given it a “buy” rating, and the remaining 15% have recommended a “hold.” The 12-month average target price is $140.67, which is a 16.7% upside.
Mattel (MAT) is rated a “hold” by 75% of the 16 analysts covering the stock. Another 19% have rated it a “buy,” and the remaining 6% have rated it a “sell.” The 12-month average target price for MAT stock is $15.35, which reflects an 8.9% upside.