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Omar Venerio
Omar Venerio
Articles (1746) 

Monday Morning Market Highlights

Shares of Hasbro fall despite earnings beat

U.S. markets

U.S. market indexes were up on Monday morning. The Dow gained 0.42% to 31,277, the S&P 500 index rose 0.37% to 3,901 and the Nasdaq Composite Index was up 0.54% at 13,931.



Global markets

The main European stock markets traded in the green.The U.K.'s FTSE 100 increased 0.53%, Germany's Dax rose 0.02%, France's CAC 40 gained 0.47% and Spain's Ibex 35 was up 0.05%.

In Asia, Japan's Nikkei 225 gained 2.12%, India's BSE Sensex rose 1.22%, Hong Kong's Hang Seng advanced 0.11% and China's Shanghai Composite was up 1.03%.

Hasbro releases earnings report

Shares of Hasbro Inc. (NASDAQ:HAS) fell more than 3% on Monday morning after the company announced financial results for the fourth quarter and full-year 2020. It posted earnings of $1.27 per share, beating analysts' estimates by 13 cents, on revenue of $1.72 billion, which grew 3.6% year-over-year and beat expectations by $30 million.

Chairman and CEO Brian Goldner had the following to say:

"Our teams successfully drove demand for several product categories across our portfolio including our entire gaming portfolio from Wizards of the Coast brands to face-to-face gaming. They found ways to reach the global consumer despite retail closures throughout the year, delivering over $1 billion in ecomm revenues for the first time. We leveraged our global supply chain capabilities and our evolving geographic manufacturing supplier base to get products made and distributed. We integrated our acquisition of eOne and while live-action TV and film production was limited, we made substantial progress developing Hasbro IP for storytelling that we believe will lead to enhanced revenues and earnings power from Hasbro brands from multiple income streams."

The operating profit reached $186.4 million, up 36% from the prior-year quarter. The adjusted operating profit was $261.4 million, up 51% when compared to a year ago.

The U.S. and Canada segment's revenue and operating profit grew, fueled by gains in Franchise Brands, Hasbro Gaming and Emerging Brands. The International segment's revenue and operating profit were down, driven by declines in Latin America and Asia. Entertainment, Licensing and Digital segment revenues were also down on lower consumer product revenue. However, eOne's pro forma revenue increased due to higher live-action TV and the resumption of film production.

Moreover, Hasbro announced the board of directors has declared a quarterly cash dividend of 68 cents per common share.

Hasbro shares have risen 3% since the beginning of the year versus the S&P 500's gain of 5.4%.

At the end of September, Joel Greenblatt (Trades, Portfolio) reduced his investment by 25% to 2,643 shares.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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