|Bid||93.79 x 1800|
|Ask||93.81 x 800|
|Day's range||92.62 - 93.93|
|52-week range||79.00 - 116.20|
|PE ratio (TTM)||55.18|
|Forward dividend & yield||2.52 (2.62%)|
|1y target est||N/A|
Some analysts say the Toys ‘R’ Us liquidation will continue to have an impact on Hasbro and Mattel, while others highlight other headwinds.
As of July 17, Mattel (MAT) was rated a “hold” by 67% of the 15 analysts covering the stock. For Mattel, apart from rising costs and underperforming brands, there have been several problems. Mattel has also stopped paying dividends and is using the funds for investments.
On a YTD (year-to-date) basis, Hasbro (HAS) stock is up 3.8% to $94.35 as of July 16. In comparison, Mattel (MAT), Jakks Pacific (JAKK), and Take-Two Interactive (TTWO) have risen 5.9%, 10.6%, and 14.7%, respectively. The S&P 500 Index has gained 4.7%.
As of July 16, Hasbro (HAS) was rated a “buy” by 60% of the 15 analysts covering the stock. The shift to digital technology has hurt the demand for traditional toys along with expanding e-commerce. To retain its market share, Hasbro has focused on product innovation, developing a digital sales channel.
Hasbro (HAS) is slated to announce its second-quarter results on July 23. Wall Street expects the company to report adjusted EPS of $0.31, reflecting a decline of 41.5% on a YoY (year-over-year) basis. Hasbro’s management hasn’t provided any outlook for the second quarter.
Analysts expect Hasbro (HAS) to report a revenue decline of 13.6% to $840.1 million in the second quarter of fiscal 2018, which is a stark contrast to the revenue growth of 10.6% reported in the corresponding quarter last year. Hasbro is slated to announce its quarterly results on July 23. Hasbro’s management hasn’t provided any guidance for the second quarter.
While declining consumer demand and sales crunch may affect Hasbro's second-quarter sales, rising cost of sales is expected to dent earnings.
Mattel and Hasbro: How Have the Stocks Performed in 2018? In the past 30 days, there have been quite a few changes in the target price and ratings for Mattel stock. On June 28, D.A. Davidson cut the rating on the stock to “underperform” from “neutral.” On June 19, UBS slashed the rating on the stock to “neutral” from “buy.” However, UBS raised the target price for Mattel stock to $18.00 from $17.00 projected earlier.
Hasbro’s (HAS) revenue has been on an uptrend compared to other toymakers like Mattel (MAT). The company reported revenue increases of 4.8%, 4.0%, 12.9%, and 3.8% for 2014, 2015, 2016, and 2017, respectively. The strength in both franchises (Monopoly, Transformers, and Nerf) and partnered brands (Beyblade and Star Wars) is the driving factor along with strength in North American markets.
As of July 3, Mattel (MAT) and Hasbro’s (HAS) stock prices have risen 8.1% and 2.5% on a YTD (year-to-date) basis. In comparison, the S&P 500 Index (SPY) has risen 1.5% on a YTD basis. Despite the gains, there’s mixed sentiment regarding the toy companies.
JAKKS Pacific (JAKK) remains committed toward expanding its footprint outside the United States. The company has also opened sales offices and expanded distribution agreements for its products.
Toys R Us announced it was shutting down its U.S. operations earlier this year, after being sunk by debt and complacency.
In a bid to overcome prolonged sales crunch, Hasbro (HAS) partners with Rhett & Link and focuses on expanding its customer base.
Toys "R" Us liquidation effect, lower demand for traditional toys and competition from related industries are continuing to put pressure on Hasbro (HAS).
The video game company's consumer products initiative just got a major boost with Hasbro and LEGO signing up to make "Overwatch"-themed toys.
Jim Cramer rattles off his take on callers' favorite stocks, including a toymaker recovering from Toys R Us' bankruptcy.
Hasbro (HAS) has been trying out strategic collaborations and partnerships to expand its customer base. In order to fight sales slump, it further partners with Quidd.