3 Ways Hasbro Is Evolving in Order to Grow Its Toy Business
Hasbro (NASDAQ: HAS) is one of the largest and most progressive global toy companies. It owns a portfolio of beloved toy brands, including Monopoly, Play-Doh, Power Rangers, and My Little Pony. Results from the first nine months of 2019 were solid: Though revenue was only up 3.2% year over year, Hasbro managed to increase its operating profit by 44.0%, and adjusted net earnings per share were up 12.3% year over year.
Shares of the company hit an all-time high of $124 per share in July 2019 before settling down to its current level of $106, and shareholders enjoyed a 30% capital gain last year. This great performance is not without reason though -- the company has demonstrated its ability to evolve with the times by leveraging its strengths as a toy company to create multiple streams of income. Its recent acquisition of Entertainment One for $4 billion will further strengthen its stable of brands and has the potential to boost revenue and profit growth even more. The company reports its fourth-quarter and full-year earnings on Feb. 11.
In fact, the division with the highest growth rate of 23% year over year (for the first nine months of 2019) was the entertainment, licensing, and digital division, underscoring the importance of tapping into tie-ups and licenses to generate an alternative source of revenue. Here is a look at three ways Hasbro has evolved, and how it's been able to grow its toy business over time.
Source Fool.com