What Happened?
Shares of toy and entertainment company Hasbro (NASDAQ:HAS) jumped 13.4% in the afternoon session after the company reported impressive fourth-quarter results, which blew past analysts' sales, operating profits, and earnings estimates. Margins improved significantly and this helped push full-year adjusted EBITDA ahead of expectations, reinforcing the company's ability to drive profitability despite a slight revenue decline. Zooming out, this was a solid quarter.
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What The Market Is Telling Us
Hasbro’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for Hasbro and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 10 months ago when the stock gained 12.9% on the news that the company reported first-quarter results that beat on revenue, operating margin, and EPS. The top line benefited from growth in the Wizards of the Coast & Digital Gaming segment (+7%) and Entertainment (+65%). The company maintained its full-year outlook, and adjusted EBITDA guidance for the full year came in ahead of expectations. Zooming out, this was a great quarter that shareholders will appreciate.
Hasbro is up 22.7% since the beginning of the year, and at $69.57 per share, it is trading close to its 52-week high of $72.94 from October 2024. Investors who bought $1,000 worth of Hasbro’s shares 5 years ago would now be looking at an investment worth $700.25.
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