Yahoo Finance Why Hasbro (HAS) Stock Is Up Today
What Happened:
Shares of toy and entertainment company Hasbro (NASDAQ:HAS) jumped 9.3% in the afternoon session after the company reported a "beat and raise" quarter. Second-quarter earnings blew past analysts' revenue and EPS expectations. Moving on, it upgraded its full-year revenue guidance, which is a sign of confidence in the near-term demand for its offerings. Notably, the company raised full year 2024 guidance across key operating segments. Adjusted EBITDA was also raised. Zooming out, this was an impressive quarter that should delight shareholders. After the initial pop the shares cooled down to $61, down 0.8% from previous close.
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What is the market telling us:
Hasbro's shares are not very volatile than the market average and over the last year have had only 7 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago, when the stock dropped 14.5% on the news that the company reported fourth-quarter results with revenue that missed analysts' expectations as its consumer products and entertainment segments declined 25% and 49% year on year. Its Wizards of the Coast and Digital Gaming segment was a silver lining (7% growth) but not enough to move the needle on company-level performance. The company's full-year 2024 EBITDA guidance also missed Wall Street's forecast. On the bright side, Hasbro initiated a quarterly dividend of $0.70 per share. Overall, the results could have been better.
Hasbro is up 22.2% since the beginning of the year, but at $61 per share it is still trading 16.3% below its 52-week high of $72.92 from September 2023. Investors who bought $1,000 worth of Hasbro's shares 5 years ago would now be looking at an investment worth $499.22.
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