Mix Shift and Lapping of Toys 'R' Us Headwinds Bolster Hasbro’s Profitability; Shares Overvalued
Narrow-moat Hasbro posted solid first-quarter profit metrics, with an operating margin of 5% well ahead of the slightly positive metric we had forecast. With sales growth of 2%, versus our expectation of a 3% decline, the company was able to benefit from modest cost leverage, and the selling, distribution and administration ratio contracted 270 basis points, to 30.8%. However, more important, profitability benefited from a mix shift, with higher-margin franchise brand sales rising 9% (well ahead...Hasbro is a global play and entertainment company. The company's segments are: United States and Canada, which includes the marketing and selling of action figures, electronic toys and related electronic interactive products, among others, primarily within the United States and Canada; International, which markets and sells both toy and game products primarily in the European, Asia Pacific, and Latin and South American regions; Entertainment, Licensing and Digital, which includes consumer products licensing, digital gaming, movie and television entertainment operations; and Global Operations, which sources finished products for the company's United States and Canada and International segments.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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