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With the quarterly earnings report for major toy magnates like Hasbro and Mattel coming out this week, we decided to hone in on those stocks this Monday! Furthermore, Pokémon GO’s recent success as an augmented reality (AR) platform certainly raises questions about the future of physical toy manufacturers. Can traditional forms of entertainment keep up in light of mobile AR gaming? Read on to find out more.
By the power of Greyskull Mattel reinvents itself (Released: 16/7/2016) Toy manufacturer Mattel Inc, (NASDAQ: MAT), might try to push its Pokémon related product line in wake of a surge in Pokémon interest. Despite that, analysts are bearish in light of Mattel’s looming financial report this week, expecting a 5% sales decline to $934 Million. Mattel’s losses are in part due to a loss of a major manufacturing contract with Disney. Rival Hasbro wrested the rights to manufacture Disney’s Princess and Frozen Dolls, which accounted for 7% or about $440 million of Mattel’s 2015 sales. However, we should not view Mattel’s future with a spirit of pure pessimism, as Mattel and DC comics are partnering together on a six book comic story crossover between He-Man and the Masters of the Universe and the Thundercats. Mattel is also attempting to stay relevant with its new 3D printer line producing plastic toys for children, dubbed the ThingMaker .
Stock Futures Ease Turkey Fears: ARM Deal; Netflix, Hasbro Earnings; Tesla Plan Loom (Released: 17/07/16) Another toy company that is attempting to ride off the coattails of the Pokémon GO mobile gaming craze is Hasbro (NASDAQ:HAS). This Monday Hasbro will be releasing its quarterly earnings report. According to Ed Carson , some analysts are expecting an 18% or 39 cent increase in earnings per share. Other analysts thinks that the stock is unlikely to benefit from the augmented reality market increases caused by Pokémon GO because Hasbro products are typically traditional with toys and board games that primarily appeal to kids. Aside from the AR market, Hasbro continues to benefit from Star Wars and Marvel-themed products with Q1 earnings reaching a record high. Since then the stock has been moving sideways, increasing above its 50-day moving average to $85.50 a 0.3% rise on Friday.
Shares of Walt Disney Company (The) (DIS) Rally 0.18% (Released 18/07/16) Disney (NYSE:DIS) certainly has high hopes for augmented reality and its cousin, virtual reality. On July 11th, the House of Mouse announced the late stage startups that have been admitted into 2016 accelerator class. Interestingly, two out of the nine of these ventures focus primarily on virtual reality and augmented reality. Over the past 4 weeks, traders have been relatively bearish on Walt Disney Company leaving the stock down -3.41% compared to the S&P 500. However, in the near-term and medium-term, the stock is up 0.81% in the past 4 weeks. In the past week, buying has continued for the stock leading the stock to have a recorded 20-day Moving average of 2% while the stock hovers around $99.80 . With this in mind, go ahead and keep an eye out for Disney stock movements by setting price levels in the Call Levels app.
Strong Sell Calls For Build-A-Bear Workshop. Inc. (NYSE:BBW) at 0 (Released 17/8/2016) According to Investornewswire, strong buy ratings for Build-A-Bear Workshop Inc. (NYSE:BBW) stand at 2 with no ratings for strong sells, signalling further long term growth in sales for the company. BBW had the foresight to extend their product range to Pokémon products, specifically Pikachu plushies late last year. They could see further sales growth in their Pikachu line following Pokémon GO’s rejuvenation of the Pokémon brand. According to NASDAQ, the current growth estimate for this year calls for earnings-per-share growth of 29.7%. Furthermore, the long-term growth rate is currently an impressive 20%, suggesting pretty good prospects for the long haul. BBW is currently sitting around $13.92 and is definitely worth tracking for those interested in lower cap stocks.