Hasbro Beats Earnings Estimates, Despite 15% Drop in Profits
, whose brand names include Hasbro, Playskool, Tonka, Tiger, Milton Bradley, Parker Brothers, Nerf, Tinkertoys and G.I. Joe, beat EPS estimates by three cents, as revenue gained 7% to $1.30 billion.
The growth in revenue is attributable to the company's Star Wars, Playskool, Nerf, and trading card and board games, including Trivial Pursuit and Scrabble. Additionally, Transformers and Littlest Pet Shop continued to contribute significantly to the segment in the quarter.
We turned cautious on shares of Hasbro back on Sept. 29, when the stock traded at $35.66. The shares are a bit below what we feel is an attractive risk/reward opportunity for investors at this time. The company's valuation is average, and its dividend yield of 2.66% (based on last night's closing stock price of $30.12) is decent, but not overly exciting. Investors should look for a better entry point, perhaps in the low 20s, which seems like a technical area of some support. We'll keep an eye on shares and let investors know if we think there may be a good opportunity to move in.
Hasbro is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.
Global Slowdown Leads to Eaton's Flat Profit Forecast
, a manufacturer of products for the automotive, aerospace and electrical industries, said sales in the quarter rose 25% to $4.1 billion, mostly due to acquisitions.
Management stated that severe issues in world financial markets have started to impact demand for its products. The company anticipates fourth quarter growth in its end markets to be flat in relation to the previous year.
For the fourth quarter, the company sees earnings per share between $1.55 and $1.65, which is well below Wall Street expectations of $1.88.
We had removed Eaton from our "Recommended" list back on June 27, when shares traded at $84.20. We think the stock may get a short-term bounce here, but we would like to see the shares build a solid base for any long-term investment potential. The company does have an attractive dividend yield of 4.50%, based on Friday night's closing stock price of $44.42.
Eaton is not recommended at this time, holding a Dividend.com Rating of 3.2 out of 5 stars.
Halliburton Beats Profit Estimates as Overseas Demand Stays Steady
reported EPS this morning that came in two cents ahead of Wall Street estimates.
The company's revenue rose 23.5% to $4.85 billion, exceeding analysts' estimates of $4.62 billion. Increased international activity and higher demand in the U.S. drove the strong results. Management did say that the announced reduction in some customers' capital spending would bring down its North American rig counts below previously anticipated levels.
We had removed Halliburton from our "Recommended" list on July 22, as part of an overall energy sector downgrade. The shares were trading at $48.91 at the time. We think the shares are looking a bit more attractive from a price standpoint, but the low dividend yield of 1.97% -- based on Friday's closing stock price of $18.26 -- is still not super attractive. We would like to see shares stabilize a bit, but think the opportunity may strictly be short term and not for long-term investors.
Halliburton is not recommended at this time, holding a Dividend.com Rating of 3.2out of 5 stars.
Mattel Misses on Earnings
came up 5 cents light on its EPS numbers, as the company reported its third-quarter results this morning.
The company may have a new star in the making, however, as sales of American Girl toys rose 11%, helped by the Kit Kittredge film. The new toy series outperformed sales of Barbie, which dropped 1%.
We had removed shares of Mattel from our "Recommended" list back on Oct.6, when shares were trading at $17.53. We think MAT shares are getting cheaper, but we still need to see shares stabilize a bit before calling a bottom. The company has a 5.19% dividend yield, based on Friday's closing stock price of $14.45.
Mattel is not recommended at this time, holding a Dividend.com Rating of 3.3 out of 5 stars.
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At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.