Shareholder value Archives - Page 4 of 8

Hasbro Spikes 13% Following Positive Q2 Earnings

Posted on August 11, 2018August 10, 2018 by Noah Kiedrowski

Hasbro's stock skyrocketed 13% after reporting better than expected Q2 earnings. Hasbro Inc. (NASDAQ:HAS) is setting the post-Toys "R" Us bankruptcy narrative and laying out a business roadmap for long-term profitable growth across its brands. The headwinds attributable to the bankruptcy of Toy "R" Us appear to be subsiding. Hasbro reported year-over-year overall revenue decline of 7%, however, beat on EPS and revenue by posting $0.48 (bearing by $0.18) and $904.5 million (beating by $66.4 million), respectively. Despite the negative revenue numbers, Hasbro's stock bounced to the upside especially after the earnings call commentary painted a positive long-term narrative while weathering the Toy "R" Us liquidation domestically and abroad. As Hasbro realigns and effectively manages the Toy R Us liquidation, this challenging backdrop is beginning to resolve itself to Hasbro's benefit. There's many current and future growth catalysts for Hasbro in movie franchises such as Marvel, Star Wars and other Disney properties since Hasbro is the exclusive toy maker, potential e-sports with Dungeons and Dragons and Magic: The Gathering, newly acquired Power Rangers franchise which will emulate Hasbro's My Little Pony and Transformers' Bumblebee within Hasbro Studios and its legacy games such as Monopoly and Nerf. Hasbro has great Q3/Q4 2018 catalysts, a strong and growing dividend yield, clear skies post Toy "R" Us liquidation and putting forth initiatives within Hasbro Studios to further propel growth thus presenting a compelling long-term buy.

Jim Cramer’s Mad Money Follow-Up Interview - “The Worst Is Over”

Previously, Jim Cramer interviewed Hasbro's CEO Brian Goldner on Mad Money, and he was confident that "the worst is over" for Hasbro as the Toys "R" Us liquidation unfolds. Goldner went on to say "I am certain that, a year from now, we will not be talking about Toys "R" Us in this negative light," Goldner added.

Now as a follow-on from that interview, conducted on July 23rd, Jim Cramer caught up Goldner to assess the progress Hasbro was making towards circumventing the Toys "R" Us liquidation and its other growth initiatives within the company. Continue reading "Hasbro Spikes 13% Following Positive Q2 Earnings" →

Disney Continues To Deliver

Posted on July 7, 2018July 6, 2018 by Noah Kiedrowski

Disney continues to deliver at the box office and theme parks, yet its stock price has been stubbornly stuck in a tight trading range of $98-$110. The Walt Disney Company (NYSE:DIS) can’t seem to break out despite breaking record after record at the box office and throughout its theme parks thus far in 2018. Disney’s brands are ubiquitous and providing long-lasting, durable revenue streams that transcend theme parks, toys, merchandise, streaming initiatives and international reach. Disney’s Marvel franchise posted back-to-back record-shattering $200-plus million weekend openings at the box office for Black Panther and Avengers: Infinity War. Black Panther and Avengers: Infinity War became the third and fourth highest grossing movies of all-time domestically, respectively. Avengers: Infinity War broke through the $2 billion thresholds at the worldwide box office becoming the fourth movie to achieve that feat. If that wasn’t impressive enough, The Incredibles 2 shattered box office records during its opening weekend debut, not only shattering the previous opening weekend record for an animated film but finishing with one of the top ten openings of all-time for a film of any genre. Ant-Man and The Wasp hit theaters as the third Marvel movie thus far in 2018 and is expected to deliver very strong numbers as an ancillary Marvel film during its opening weekend.

Meanwhile Disney's Parks and Resorts are posting strong growth while shoring up its stalling Media Networks segment with a confluence of growth catalysts via streaming with Hulu (30% stake and will likely be expanded to a majority 60% stake after the Fox acquisition), BAMTech, Sling, ESPN streaming service and a Disney branded service coming in 2019 to directly compete with Netflix (NFLX). Disney is closing the gap in streaming as Hulu grows much more rapidly than Netflix and in the backdrop, ESPN and direct to consumer Disney branded streaming service comes to fruition. Disney recently reported Q2 FY2018 revenue growth across every business segment with an overall revenue growth of 9%. Disney offers a compelling long-term investment opportunity considering the growth, Fox acquisition, pipeline, Media Networks remediation plan, diversity of its portfolio, tax reform, share repurchase program and dividend growth. Continue reading "Disney Continues To Deliver" →

Disney's Growth and Netflix's Valuation Parity

Posted on May 12, 2018 by Noah Kiedrowski

Content Juggernaut:

The Walt Disney Company (NYSE:DIS) just posted back-to-back record-shattering $200-plus million weekend openings at the box office in its Marvel franchise posting $202 and $258 million for Black Panther and Avengers: Infinity War, respectively. Wall Street hasn’t seemed to notice nor recognize Disney’s box office feat as of late. Black Panther shattered all previous President’s Day weekend records and became the third highest grossing movie of all-time domestically and ultimately grossing $1.34 billion worldwide and becoming the eighth highest grossing movie of all-time. Avengers: Infinity War posted the biggest box office weekend of all-time with $258 million while breaking the previous record set by Star Wars: The Force Awakens by $10 million. Avengers went on to set a new worldwide record over its opening weekend, posting $630 million in box office gross. In its first 11 days of release, Avengers: Infinity War grossed over $1 billion worldwide, making it the fastest movie to reach that milestone without any help from the Chinese market. Disney is in its own league and competing with itself at the box office with its Marvel and Star Wars properties. Which begs the question, is content really king as Disney is ignored and Netflix has reached parity with Disney in terms of market capitalization?

Ant-Man and The Wasp, Solo: A Star Wars Story and The Incredibles 2 are around the corner. Meanwhile Disney's Parks and Resorts are posting strong growth while shoring up its stalling Media Networks segment with a confluence of growth catalysts via streaming with Hulu (30% stake and will likely be expanded to a majority 60% stake after the Fox acquisition), BAMTech, Sling, ESPN streaming service and a Disney branded service coming in 2019. Disney is closing the gap in streaming as Hulu grows much more rapidly than Netflix and in the backdrop, ESPN and direct to consumer Disney branded streaming service comes to fruition. Disney recently reported Q2 FY2018 revenue growth across every business segment with overall revenue growth of 9%. Disney offers a compelling long-term investment opportunity considering the growth, Fox acquisition, pipeline, Media Networks remediation plan, diversity of its portfolio, tax reform, share repurchase program and dividend growth. Continue reading "Disney's Growth and Netflix's Valuation Parity" →

The Worst Is Over For Hasbro

Posted on May 4, 2018May 8, 2018 by Noah Kiedrowski

Introduction:

Hasbro Inc. (NASDAQ:HAS) released earnings that were rife with headwinds attributable to the bankruptcy of Toys"R"Us. Hasbro reported a year-over-year overall revenue decline of 16% and missed on EPS by $0.24. Hasbro cited the liquidation of Toys"R"Us and retail inventory overhang, primarily in Europe, as drags on revenue domestically and internationally. Revenue in North America fell 19% while international revenue fell 17% year-over-year during the quarter. Despite the negative headline numbers, the stock bounced to the upside after the earnings call commentary painted a positive long-term narrative while weathering the Toys"R"Us liquidation. The stock responded by moving from $79 to $87 or 10% to the upside post-earnings. Hasbro is navigating the challenging retail landscape and provided positive commentary on the conference call for future growth avenues. As the company realigns and efficiently manages the Toys"R"Us liquidation, this challenging backdrop will likely resolve to Hasbro's benefit as there are many current and future growth catalysts despite the supply chain disruption.

Hasbro has many current and future growth catalysts with major billion dollar movie franchises in the fray while riding the coattails of Black Panther into the home entertainment window which posted record-breaking numbers with $685 million domestically and $1.33 billion internationally at the box office. Combine this success with the upcoming Marvel and Star Wars movies including Avengers: Infinity War, Star Wars Han Solo and Ant-Man and The Wasp to highlight a few major films. Hasbro recently increased its dividend from $0.57 to $0.63 per share. Hasbro has excellent Q2-Q3 2018 catalysts, boasts a ~3% dividend yield, weathering the Toys"R"Us liquidation and putting forth initiatives within Hasbro Studios to further propel growth thus presenting a compelling long-term buy. Continue reading "The Worst Is Over For Hasbro" →

Disney Could Rally After A Long Pause

Posted on April 10, 2018April 10, 2018 by Aibek Burabayev

In February my respected fellow author Noah Kiedrowski recommended that you to take a look at The Walt Disney Company (NYSE:DIS) and supported his view with an extensive analysis of the company, which has quite a positive outlook and sound fundamentals. He has been covering Disney for some time on the Blog and I am sure his focused research could let you find quite useful data about the company.

I spotted an interesting long setup on the Disney chart recently, which confirms Noah’s February outlook and I am happy to share it with you in this post. Now you will have his background analysis augmented with my technical outlook for a 360⁰ view.

Chart: The Walt Disney Company Monthly: Finishing Triangular Consolidation

Chart courtesy of tradingview.com

After examining the long-term chart of this fantastic company, I understood why my colleague admires Disney so much. This stock is like other great companies that are moving all the way up with quite long consolidations. The previous one was observed from 1998 till 2009 with seesaw moves of the wide range between $13 and $44 marks. After it broke loose, the stock just rocketed to the sky-high level at the $122 in 2015 with just minor pullbacks. The RSI then has reached an extremely overbought level at the 88 mark. Continue reading "Disney Could Rally After A Long Pause" →

Tag: Shareholder value