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.

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