With the bankruptcy filing by Toys 'R Us, it has been anything but fun and games for the toy companies. On Wednesday, Hasbro will let it be known how it fared in the fourth quarter and the important holiday selling season.
Hasbro Fourth Quarter Earnings Report (Wednesday, February 7, before the open)
- Why it's important
- Hasbro is one of the world's largest toy and game companies, so it has unique perspective on demand dynamics in the toy category
- Hasbro derives nearly 50% of its revenue outside the U.S., so it will offer another reference point for market participants aiming to get a feel for the impact of foreign exchange on earnings prospects for U.S. multinationals
- The Toys 'R Us bankruptcy filing created a lot of questions for investors in toy companies and they will be seeking answers from Hasbro on what impact that filing will have on its sales and cash flow prospects
- Note: Toys 'R Us comprised 9% of Hasbro's 2016 net revenues
- Hasbro counts Marvel, Star Wars, and Disney Princess among its partner brands, so investors will be eager to hear how Hasbro expects to capitalize on licensed brands
- Press reports have suggested Hasbro might be interested in acquiring competitor Mattel (MAT). The company, in its earnings conference call, will likely be pressed by analysts to address those reports. What Hasbro says (or doesn't say) could affect the manner in which shares of HAS and MAT trade on Wednesday.
- A closer look
- What's in play?
- Related companies
- Mattel (MAT)
- JAKKS Pacific (JAKK)
- Major customers
- Wal-Mart (WMT)... 18% of Hasbro's 2016 net revenues
- Target (TGT)... 9% of Hasbro's 2016 net revenues
- Consumer Discretionary Select Sector SPDR (XLY)