Piper Jaffray Continues To Recommend HAS As Long-Term Investment Idea

Hasbro, Inc. (NASDAQ: HAS) reported December quarter results in line with its pre-release, Piper Jaffray reports.

“Revenue declined 7% Y/Y, as the result of weaker than expected end market demand - execution was fair,” Piper Jaffray writes. “Operating margins declined 200bps (15.7%) and EPS was $0.99. Games & puzzle sales declined 22% Y/Y and was the most concerning segment overall. As expected, the Boys category declined 1% Y/Y on a tough compare.

“Inventories were up materially Y/Y as sales did not fully develop over the holidays. Initial results from The Hub are positive and ratings are still developing. Looking forward, we expect a solid earnings ramp in CY11/CY12 driven by an improved film slate and no dilution from The Hub media division.

“We continue to recommend HAS as one of our top long-term investment ideas - $55 Price Target (15x CY12E EPS).”

Hasbro, Inc. closed Monday at $45.63.