The firm posted better-than-expected fourth quarter earnings, but revenue that missed the mark
The shares of toymaker Hasbro, Inc. (NASDAQ:HAS) are traveling higher after a mixed fourth-quarter earnings report, where the company posted profits of $1.24 per share, which beat analysts' estimates, but $1.43 billion in revenue which fell below the projected $1.44 billion. The firm attributed its holiday-quarter profit beat to high demand for toys related to the Frozen and Star Wars franchises. HAS is up 7.3% at $108.30 in pre-market trading --poised for its best single-session gain since July 23.
Not only that, HAS is looking to topple a recent ceiling at its 100-day moving average for the first time since an earnings-induced late-October bear gap. And while the security is still trading well below those pre-bear gap levels, it does boast a 20% year-over-year gain, and just popped north of its year-to-date breakeven.
While analysts have been mum on Hasbro this morning, a round of upgrades could be on the way. Nearly half of the 15 brokers covering the stock consider it a "hold." Plus, the consensus 12-month target price of $116.27 is a measly 7% premium to current levels.
In the options pits, sentiment appears to be more optimistic, with 2.06 calls bought for every put at the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 98th percentile of its annual range, suggesting a much healthier appetite than usual for long calls of late.