EARN25

Surprise Profit Puts Hasbro on Track for Best Day in Years

Hasbro's revenue arrived well above expectations, too

Apr 23, 2019 at 9:46 AM
facebook X logo linkedin


Hasbro, Inc. (NASDAQ:HAS) stock gapped higher at the open this morning, after the toymaker said it swung to an unexpected first-quarter profit of 21 cents per share, while revenue of $732.5 million handily exceeded the consensus estimate. HAS cited rising sales from its franchise brands -- which include Play-Doh and Monopoly -- as well as a strong demand for Transformers "BumbleBee" toys.

In reaction, HAS shares have surged 13.5% to trade at $100.03 -- pulling embattled rival Mattel (MAT) stock higher, too. Heading into today's trading, Hasbro was up a modest 8.4% year-to-date (YTD), compared to the S&P 500 Index's (SPX) 16% YTD gain. The security has now sliced through a recent ceiling at its 200-day moving average, pacing for its biggest one-day gain since Feb. 6, 2017, when it rallied 14.1%.

Analysts have yet to make any major moves after Hasbro's earnings report, though there's certainly room for upgrades and/or price-target hikes in the wake of the blowout results. While four of 12 brokerages currently maintain a tepid "hold" recommendation, the average 12-month price target of $98.57 is a discount to HAS stock's current price.

Short sellers could be forced to cover their bearish bets, too, which could keep the wind at Hasbro's back. Short interest rose 2.9% in the most recent reporting period to 7.17 million shares. This accounts for a healthy 6.1% of the equity's available float, or nine times the average daily pace of trading.

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!