Hasbro (HAS) delivered better-than-expected fourth-quarter and full-year results characterized by robust revenue growth in key business segments. Coming off a strong year, the company expects continued growth in 2022, going by its guidance. HAS shares fell 0.98% to close at $93 on February 7.
Hasbro is a global play and entertainment company that offers children and family leisure products and services.
Revenue in the fourth quarter landed at $2.01 billion, up 17% year-over-year and better than the consensus estimate of $1.87 billion. The increase was driven by record revenue for Wizards of the Coast, which jumped 18%. The company also posted 54% revenue growth in the Entertainment segment and 9% growth for the Consumer Products segment. Full-year revenue increased 17% to $6.42 billion.
Hasbro’s adjusted net earnings in the quarter landed at $168.4 million, or $1.21 per diluted share, better than the analyst estimate of $0.86 a share. Full-year adjusted earnings increased 41% to $723.4 million, or $5.23 per diluted share.
Management expects continued growth in 2022, with revenue and operating profit expected to grow at a low to single-digit rate. Operating cash flow is expected to range between $700 and $800 million.
The board of directors has also approved a 3% dividend increase to $0.70 per common share. The new dividend is to be paid on May 16, 2022, to shareholders of record as of May 2, 2022. Hasbro dividends have increased over the last 13 years, leading to a dividend yield of 2.9%
Last week BMO Capital analyst Gerrick Johnson reiterated a Hold rating on Hasbro stock with a $93 price target, implying the shares are fully valued at current levels.
Consensus among analysts is a Strong Buy based on 7 Buys and 1 Hold. The average Hasbro price target of $117.71 implies 26.57% upside potential to current levels.
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