In This Article:
What happened
Last month, shares of leading toy and game maker Hasbro (NASDAQ: HAS) jumped 14.7% (or 15.3%, including dividends), according to data from S&P Global Market Intelligence.
This performance makes the S&P 500's 1.4% return in July look like a low-rent district in Monopoly.
Image source: Hasbro.
So what
We can attribute Hasbro stock's strong performance last month to the company's release of second-quarter results that pleased investors. On July 23, shares soared to a closing gain of 10%, thanks to both revenue and earnings sailing by Wall Street's expectations.
In Q2, revenue rose nearly 9% (or 11% in constant currency) year over year to $984.5 million, easily beating the $956.8 million consensus estimate. Earnings adjusted for one-time items soared 63% to $0.78, breezing by the $0.50 analysts were anticipating.
As I wrote in my earnings take, "Revenue growth was driven by the company's new digital and esports initiative, Magic: The Gathering Arena, along with dependable staples Monopoly, Play-Doh, and Magic: The Gathering tabletop. Disney's (NYSE: DIS) Marvel franchises Avengers and Spider-Man also helped power growth."
Data by YCharts.
Thanks to two consecutive quarters of year-over-year revenue and adjusted earnings growth, Hasbro stock has bounced back nicely in 2019 after being torpedoed last year by the fallout from the Toys R Us bankruptcy and liquidation.
Data by YCharts.
Now what
CEO Brian Goldner reiterated on the earnings call that management expects profitable growth for the full year.
More From The Motley Fool
Beth McKenna has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Hasbro and Walt Disney. The Motley Fool is short shares of Hasbro and has the following options: long January 2021 $60 calls on Walt Disney and short October 2019 $125 calls on Walt Disney. The Motley Fool has a disclosure policy.
This article was originally published on Fool.com