Key Events in the Consumer Sector in the Third Week of May
Price movement of Hasbro
Hasbro (HAS) fell by 0.85% to close at $84.39 per share at the end of the third week of May 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.85%, -2.2%, and 26.8%, respectively. This means that HAS is trading 1.2% below its 20-day moving average, 3.0% above its 50-day moving average, and 12.1% above its 200-day moving average.
Related ETF and peers
The WisdomTree MidCap Dividend ETF (DON) invests 0.65% of its holdings in Hasbro. The ETF tracks a dividend-weighted index of mid-cap stocks. The YTD price movement of DON was 7.4% as of May 20, 2016.
The market caps of Hasbro’s competitors are as follows:
Walt Disney Company (DIS): $163.8 billion
Viacom (VIAB): $15.8 billion
Mattel (MAT): $10.5 billion
Hasbro declared dividend
Hasbro has declared a quarterly cash dividend of $0.51 per share on its common stock. The dividend will be paid on August 15, 2016, to shareholders of record at the close of business on August 1, 2016.
Performance of Hasbro in fiscal 1Q16
Hasbro reported fiscal 1Q16 net revenues of $831.2 million, a rise of 16.5% compared to net revenues of $713.5 million in fiscal 1Q15. Net revenues from boys, girls, and preschool product categories rose by 23.6%, 41.2%, and 11.0%, respectively. Net revenues from the games category fell by 1.9% in fiscal 1Q16 compared to the prior year’s period. The company’s cost of sales as a percentage of net revenues and operating profit rose by 0.58% and 58.5%, respectively, in fiscal 1Q16, compared to fiscal 1Q15.
The company’s net income and EPS (earnings per share) rose to $48.8 million and $0.38, respectively, in fiscal 1Q16, compared to $26.7 million and $0.21, respectively, in fiscal 1Q15.
Hasbro’s cash and cash equivalents and inventories rose by 1.3% and 35.5%, respectively, in fiscal 1Q16 compared to fiscal 1Q15. Its current ratio rose to 3.3x, and its debt-to-equity ratio fell to 1.7x in fiscal 1Q16 compared to a current ratio and debt-to-equity ratio of 2.9x and 1.9x, respectively, in fiscal 1Q15.
During fiscal 1Q16, Hasbro paid $57.4 million as cash dividends to its shareholders. It also repurchased 475,000 shares of common stock at a total cost of $35.8 million and an average price of $75.41 per share.
Now let’s take a look at TreeHouse Foods.
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