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Hot Income Stocks: Demand For Toys Strong At Hasbro


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After some lackluster periods from early 2012 to late 2013, top- and bottom-line growth is firming forHasbro ( HAS ).

The toy maker has put in earnings growth of 11% to 56% in the latest three quarters.

Sales growth ranged from 2% to 8% over the same period.

Pawtucket R.I.-based Hasbro is seeing strong demand for its franchise brands such as Magic: The Gathering, Monopoly, Play-Doh, My Little Pony and Transformers.

Sales of its franchise brands grew by double digits in the past three quarters.

Revenue from its key brands jumped 36% in the second and third quarters, respectively. In 2013, they made up 44% of total sales.

"The combination of great brand innovation and storytelling is resonating with consumers globally to deliver revenue and profit improvements across multiple product categories and segments," Hasbro CEO Brian Goldner said in its Q2 press release.

In the current quarter, analysts polled by Thomson Reuters see profit rising 12% to $1.26 a share. Revenue is slated to rise 5% to $1.35 billion.

For this year, earnings are slated to rise 13% to $3.18 a share. Profit is expected to grow 12% to $3.56 a share in 2015.

Hasbro has increased its quarterly dividend 10 times in the past 11 years.

Back in February, the company lifted its dividend by 8% to the current rate of 43 cents a share. On an annual basis, the company pays $1.72 a share. This works out to a yield of 3.1%.

RivalsMattel ( MAT ) andJakks Pacific ( JAKK ) offer a higher dividend yield. But Hasbro has the better Composite Rating of the three.

On Dec. 19, Hasbro tumbled 6% in huge trade after BMO Capital lowered its price target to 55 from 57 and noted that the domestic toy market appeared to have weakened.

But Hasbro found support at its long-term 200-day moving average the next day and has made a modest recovery since.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Personal Finance , Investing Ideas
Referenced Symbols: HAS , MAT , JAKK




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