ESPO

Hasbro Is Down But Not Out, Shares Yield ~5.3%

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Image: Hasbro’s shares have faced considerable pressure during the past few years. By Brian Nelson, CFA Hasbro’s (HAS) recently reported fourth-quarter results weren’t great and showed revenue declining 23% as it experienced material weakness in its Consumer Products segment (-25%) and Entertainment division (-49%) in the quarter. On an adjusted basis, backing out large impairment charges, the firm’s operating loss came in at $50 million in the quarter, while it recorded adjusted net earnings of $0.38 per share. Hasbro continues to navigate a difficult demand environment for physical toys, but the company’s free cash flow remains robust and was in excess of cash dividends paid during 2023. Shares yield ~5.3% at the time of this writing. Image: Hasbro had a … Read more

Nvidia Continues to Deliver in the Face of Global Supply Chain Crunch

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Image Source: Nvidia Corporation – September 2021 IR Presentation By Callum Turcan On November 17, Nvidia Corporation (NVDA) reported third quarter earnings for fiscal 2022 (period ended October 31, 2021) that beat both consensus top- and bottom-line estimates, and the firm provided favorable guidance covering the current fiscal quarter. The company has done a solid job navigating the ongoing shortage of semiconductor components along with other hurdles, such as logistical bottlenecks and inflationary pressures. Nvidia’s growth runway is enormous as it intends to expand into a new market within the semiconductor space, which we will cover in this note. Shares of NVDA have leapt higher during the past month as the “chip” company’s (Nvidia designs chips that are produced by … Read more

Roblox Goes Public; Strong Balance Sheet and Expected Free Cash Flow

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Image Source: Roblox Corporation – S-1/A SEC Filing Executive Summary: Roblox Corporation recently went public through a direct listing on March 10, 2021. The video game platform company has an extensive growth runway with multiple avenues to further expand its business. We are impressed with its free cash flow generating abilities, pristine balance sheet, and strong growth rates of late. Roblox’s outlook for 2021 indicates its growth story is expected to continue this year in earnest. Capital appreciation seeking investors should take a deeper look at Roblox, though we caution that its co-founder, CEO, and chairman controls most of the company’s voting power. By Callum Turcan 2021 is already shaping up to be a huge year for initial public offerings … Read more

Microsoft Makes a Clever Acquisition

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Image Shown: An overview of the performance of some of Microsoft Corporation’s business segments during the fourth quarter of fiscal 2020, including highlights from its ‘Xbox content and services’ segment. We continue to like shares of Microsoft as a holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios. Image Source: Microsoft Corporation – Fourth Quarter of Fiscal 2020 Earnings PowerPoint Presentation By Callum Turcan On September 21, Microsoft Corporation (MSFT) announced it was acquiring ZeniMax Media, owner of the videogame developer and publisher Bethesda Softworks, for $7.5 billion in cash. Bethesda is perhaps best known for AAA franchises like Fallout and The Elder Scrolls, among other well-known franchises including DOOM, Quake, Wolfenstein, and Dishonored. Please note that … Read more

Videogaming Business Becoming More and More Attractive

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Image Shown: The video game industry has been placing a much greater emphasis on growing their mobile gaming operations in recent years. Part of that strategy has involved leveraging existing IP and well-known gaming titles to appeal to a wide range of users. Image Source: Electronic Arts Inc – Second Quarter of Fiscal 2021 IR Earnings Presentation Executive Summary: Activision Blizzard, Electronic Arts, and Take-Two Interactive Software have pristine balance sheets, stellar cash flow profiles, and their business models are supported by secular growth tailwinds such as the rise of the global middle class (and more broadly, additional households in emerging economies gaining access to the internet), a growing casual and dedicated video game user base across the globe, and … Read more