In Technical Analysis

Hasbro has momentum.

NASDAQ:HAS – Hasbro‘s earnings have topped the estimates in the majority of recent quarters. Revenues have also surpassed the consensus estimates, all except for the latest quarter. Consistent efforts to establish a global presence through strategic partnerships and rapid growth in emerging markets will continue to drive both top and bottom growth. Hasbro’s shares, have however, under-performed the wider industry year to date. Going forward this year’s rich content slate, new products, sales boosting initiatives along with a favourable gaming portfolio will likely drive sustained growth. Going forward, the Franchise and Partner Brands, particularly, are expected to perform well in 2017 given global digital content and innovative new offerings. However, rising competition from alternative modes of entertainment might cap top-line growth, while high costs along with macroeconomic and currency headwinds may impact profits.

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Emerging Markets

Hasbro sees rapid growth in Emerging Markets. In addition to growing brands and leveraging opportunistic toy lines and license arrangements, Hasbro is seeking to grow its international business by expanding into emerging markets, particularly in Eastern Europe, Asia and Latin and South America. Emerging markets provide greater opportunities for revenue growth than more developed markets and have been contributing to an increasingly larger share of Hasbro’s revenues, given its investments in advertising and other brand building efforts.

Despite difficult operating conditions in some key markets, Hasbro’s emerging market revenues have been increasing consistently since 2012, a trend that that is expected to continue throughout 2017.

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Macroeconomic tensions persist: uncertainty surrounding consumer spending in the United States as customers are restraining their non-essential buying. Despite moderate improvements in economic growth, consumers are increasing their spending only modestly as an increase in jobs this year has not translated into higher wages. Higher health care costs and still-tightened credit availability continue to punish consumer discretionary spending. As a result, consumers are unwilling to spend much on dispensable items. Meanwhile weaker performance in Latin American markets like Brazil due to a challenging macroeconomic environment remains a concern. Also, in Europe, the economic and political conditions are expected to be challenging post Brexit. This may continue to hurt Hasbro revenues, going forward.

Foreign Exchange Headwinds: Hasbro has considerable international presence, which exposes it to the risk of fluctuations in currency exchange rates. Strengthening of the dollar against other currencies might somewhat hurt revenues in 2017.

Higher Costs to Hurt Profits: Though the company’s initiatives to boost sales like the launch of new products and shift toward more technology driven toys to revive its brands would aid profits in the long-term, costs related to them would hurt the company in the near term.

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Recent News

On Sept 1st 2017 Hasbro Opened Pre-Orders for DROPMIX

In collaboration with video-game developer, Harmonix Music Systems, Hasbro opened pre-orders in the United States for the music-mixing game called DROPMIX. Through cutting edge technology, the game is engineered to create unique mixes with hit songs.

Also, on Aug 31st 2017 Hasbro announced it intention to unveil new line of toys for the new Star Wars Movie. Hasbro is set to unveil a highly anticipated new toy line for Star Wars: The Last Jedi on this year’s Force Friday II. Hasbro will be hereby revealing its expansive collection of figures, role play, and vehicles based on the new film.


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