Strong Demand for Games Saves Hasbro From Coronavirus Disaster
During the worst of the coronavirus market crash of March 2020, shares of Hasbro (NASDAQ: HAS) were down more than half from where they had been to start the year. The steep sell-off wasn't totally unwarranted. The toy-making leader's stock was high priced given its tepid sales growth following the bankruptcy of Toys R Us in 2018, and the company took on a lot of new debt to acquire toddler favorites Peppa Pig and PJ Masks parent Entertainment One.
But declines of that magnitude seemed overdone given the solid longer-term footing Hasbro has, so I started buying shares. After my first round of purchasing, CEO Brian Goldner said Hasbro's games were in "high demand" with families sheltering in place, and though Q1 2020 wasn't disruption-free, results could have been worse. I still think the stock is a buy.
Entertainment One (EOne) was acquired at the end of 2019, so when the new business is added to Hasbro's from last year, total sales fell 8% during the first quarter.
Source Fool.com
