HAS - Embedded Expectations Analysis - 2020 07 28
Hasbro, Inc. (HAS:USA) currently trades at corporate averages relative to UAFRS-based (Uniform) earnings, with a 21.4x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may be concerned about demand, the speed of reopening plans, and their entertainment divisionSpecifically, management may lack confidence in their ability to build supply and may be concerned about demand in the upcoming holiday season. Moreover, they may lack confidence toy stores' ability to effectively move online and may be concerned about their diversification efforts, specifically in the entertainment space. Furthermore, they may be downplaying their concerns regarding the speed of reopening plans and may lack confidence in their ability to effectively reduce excess inventory in Latin America. Moreover, management may lack confidence in their ability to make their toys more accessible in the current market and may be exaggerating the acceleration of orders for Magic and the value proposition of its newest features. Finally, management may lack confidence in their recent Entertainment One acquisition and may be concerned about the potential of initiatives planned for the back part of the year
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.
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