The coming week will feature a flood of earnings reports. One company that is certain to be in the reporting spotlight come Monday is toy and games maker Hasbro.
Hasbro Third Quarter Earnings Report (Monday, October 22, before the open)
- Why it's important
- Hasbro is one of the world's largest toy and game companies, so it has a unique perspective on demand dynamics in the toy category.
- Hasbro derived 43% of net revenue from its International segment, 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, as well as economic activity abroad.
- The emerging markets, which accounted for 14% of net revenue in 2017, are a key growth area for the company.
- The majority of Hasbro's toy products are manufactured in China, so it will be able to offer some important insight on the impact tariff actions might be having, or might be expected to have, on business activity.
- The Toys 'R' Us bankruptcy filing created a lot of questions for investors and had a significant impact on Hasbro's sales and profitability in the fourth quarter of 2017. Investors will be eager to hear what Hasbro has to say about this year's fourth quarter prospects as it anniversaries the bankruptcy filing.
- 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.
- A closer look
- What's in play?
- Related companies
- Mattel (MAT)
- Major customers
- Wal-Mart (WMT)... 19% of Hasbro's 2017 net revenues
- Target (TGT)... 9% of Hasbro's 2017 net revenues
- Consumer Discretionary Select Sector SPDR (XLY)