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Why Is Hasbro (HAS) Stock Rocketing Higher Today

StockStory - Wed Apr 24, 10:40AM CDT

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What Happened:

Shares of toy and entertainment company Hasbro (NASDAQ:HAS) jumped 12.9% in the morning session after the company reported first-quarter results that beat on revenue, operating margin, and EPS. The topline benefitted from growth in the Wizards of the Coast & Digital Gaming segment (+7%) and Entertainment (+65%). The company maintained its full-year outlook, and adjusted EBITDA guidance for the full year came in ahead of expectations. Zooming out, this was a great quarter that shareholders will appreciate.

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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 6 moves greater than 5%. 

The biggest move we wrote about over the last year was 2 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, payable on May 15, 2024, to shareholders at the close of business on May 1, 2024. Overall, the results could have been better.

Hasbro is up 31.1% since the beginning of the year, but at $65.38 per share it is still trading 10.3% 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 $634.04.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

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