From Transformers to Peppa Pig, from Monopoly to Dungeons & Dragons – games manufacturer Hasbro (HAS) sells games, movies and more to almost every age group. And it did very well last quarter. After its latest earnings figures were published, its share price broke out of its sideways movement and shot up. And its old heights are within reach again.
50% Increase in Sales
In Q2, sales increased by just over 50% year-over-year to $1.3 billion. In the Wizards of the Coast/Digital Gaming division, which also owns the intellectual property for Dungeons & Dragons and Magic: The Gathering, sales actually doubled. Bottom line, adjusted earnings per share rose to $1.05 – up from just 2 cents a year earlier.
Hasbro Has More to Offer
But the stock has even more to offer: its dividend. Currently, the yield is just under 3%. And more importantly, HAS hasn’t cut its dividend in 20 years. A lot of bad things have to happen for a company with that kind of history to cut its dividend. For the secure dividend alone, it’s worth keeping the stock in your portfolio for a few years.
Although Hasbro has been around for nearly a century, the company is still on the cutting edge. This year saw the release of Magic: The Gathering Arena, a smartphone app based on the popular card game. Licensing agreements allow Hasbro to sell toys related to Star Wars and Marvel movies, and Hasbro also makes its own movies and series.
New Business Fields
Hasbro is increasingly turning to new business areas, such as gaming and film and TV production, to drive faster growth. For example, Hasbro and the online gaming platform Roblox, which is particularly popular with children, are now collaborating. The partnership is expected to produce NERF and Monopoly-related in-game Roblox items. (Hasbro owns both NERF and Monopoly).
In conclusion, HAS is continuing to impress with excellent quarterly figures, a long dividend history and a series of strategic moves for the future. With $1.23 billion in cash, Hasbro also has a strong balance sheet.