Hasbro Is Preparing for a Strong Finish to 2020
Hasbro's (NASDAQ: HAS) revenue and profits collapsed in the second quarter, reflecting the widespread store closures in recent months. Non-GAAP (adjusted) revenue was down 29% year over year, which led to a loss on the bottom line.
But there were plenty of positive signs of a recovery on the horizon. Management believes the third quarter will be better than the second, leading to a strong finish for the year. The stock price has rebounded strongly off the lows it hit in March but is still down 29% year to date. If Hasbro shows quarter-over-quarter improvement from here, the share price should drift back to its 2019 highs.
During the recent earnings call, management cited strong underlying demand for its classic toys and games and said that the supply chain is almost back to full operation. Here's the lowdown on current business trends and why the stock may head higher.
Source Fool.com
