Hasbro generated over $1 billion from e-commerce sales globally during 2020, as the COVID-19 pandemic drove online demand for its toys and entertainment products. Shares declined 2.1% in early morning trading.
Hasbro’s (HAS) 4Q earnings per share (EPS) of $1.27 came in ahead of analysts’ estimates of $1.14. Revenue was up by 4% year-on-year at $1.72 billion, beating consensus estimates of $1.69 billion.
Hasbro’s CEO Brian Goldner said, “They [Hasbro team] found ways to reach the global consumer despite retail closures throughout the year, delivering over $1 billion in ecommerce 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.”
Goldner added, “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 company’s gaming business saw sales of $298.5 million in 4Q, up by 21% year-on-year. Hasbro’s eOne segment saw its revenue up by 10% year-on-year in the fourth quarter to $259.6 million. The company completed the $3.8 billion acquisition of eOne at the end of 2019. (See Hasbro stock analysis on TipRanks)
Late last month, JPMorgan analyst Tami Zakaria raised the price target from $89 to $106 and reiterated a Hold rating on the stock. Zakaria expected the company’s 4Q results to be below consensus due to the impact of the COVID-19 pandemic. However, Zakaria believes that a negative stock reaction could be muted by positive reaction to eOne “turning a corner and an improving movie-related content outlook.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 3 analysts recommending a Buy and 2 analysts suggesting a Hold. The average analyst price target of $106.20 implies 13% upside potential to current levels.
According to TipRanks Smart Score system, HAS scores a 9 out of 10 indicating that the stock has a high likelihood of outperforming the market expectations.