Yesterday Hasbro, Inc. (HAS) reported 2009 fourth quarter and full-year results. For the fourth quarter 2009, the Company reported net revenues of $1.38 billion, an increase of $144.1 million or 12%, compared to $1.23 billion a year ago. 2009 fourth quarter revenues grew 7% excluding a $55.4 million positive impact of foreign exchange. The Company reported net earnings for the quarter of $165.6 million or $1.09 per diluted share, an increase of $72.0 million or 77%, compared to $93.6 million or $0.62 per diluted share in 2008.
The strong results in a bad year support my contention that today's stock market, even in these uncertain times, does have plenty of bargains.
In my series: Serious Money: Cheapest Stocks List Shrinks from 26 to 21, the fourth installment screening for bargains Hasbro is among the survivors.
The stock hit a new 15-month high of $35.19 today in morning trading and has settled back a little. Although it has gone up since my initial post, it still is not expensive. The P/E of 14.58, P/S of 8.91 and P/S of 1.13 are all below the market average. The all important dividend yield of 2.6% and return-on-equity of 21.24% are above the market average.
Brian Goldner, President and Chief Executive Officer said, "Continued investments in our business, including the joint venture with Discovery Communications to form The Hub television network, the creation of Hasbro Studios, establishing a local presence in emerging geographies and securing long-term key licenses, position us not only for the success we had in 2009 but over the long term as we execute our branded play strategy globally."
He went on to give positive guidance, "As we continue to execute our strategy to re-imagine, re-invent and re-ignite our global core brands, we believe we should be able to grow revenues and earnings per share for the full year 2010..."
The company's Entertainment and Licensing division should see growth as the various super hero movies are released during the year while the continuity of numerous noteworthy brands like Milton Bradley and Parker Brothers games, and Tonka Trucks keep up recurring cash flow.
The Company repurchased a total of 3.2 million shares of common stock during 2009 at a total cost of $91.0 million and an average price of $28.67 per share. They have not concluded their buy back plan yet. If they are buying back shares perhaps investors would be wise to add Hasbro to their watchlists or dollar cost average into the stock to build a long position.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares of HAS.
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