That said, Hasbro seems to be getting its act together. The toy and game business is looking a little better, and the company's efforts in media (TV and film) could pay off in the long run. Still, toys and children's entertainment is a fiercely competitive business and there is no telling whether Hasbro will draw little kiddies' interest - and their parents' money - over the likes of Mattel (Nasdaq:MAT), Disney (NYSE:DIS) and other competitors. (For more on Hasbro, check out Despite Down Quarter, Hasbro Plays Well.)
A Mixed Quarter With Some Questions
Hasbro offered up a mixed bag of results for the first quarter, which was reported April 14. Revenue was not bad, and performance was basically the same as last year, although it snuck above the average estimate. Interestingly, there was a fairly wide range of estimates going into this quarter and that often correlates with above-average volatility.
Still, there are some questions in that top-line result. Games/puzzles, along with toys for girls and preschoolers, were all down by double-digit percentages; meanwhile, tous for boys were up 25%. That suggests that Hasbro loaded the channel this quarter - perhaps banking on upcoming movie tie-ins to "Transformers", "Thor and "Captain America". If these movies perform well at the box office and there's good sell-through, that's fine ... but if the movies (or toys) falter, that could sour the whole year for Hasbro.
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