Hasbro ( NASDAQ: HAS ) shares headed higher on Tuesday as CEO Chris Cocks outlined plans for 50% profit growth in coming years.
During the presentation, Cocks indicated that the company is targeting $8.5B in revenue per annum by 2027, led by an expected surge in entertainment revenue and double-digit annual growth in licensed products. Further, the company expects to implement annual cost savings of up to $300M to improve bottom line performance while exiting unprofitable lines of business.
Shares of the Pawtucket-based toy manufacturer moved up strongly in early trading on Tuesday. Other toy stocks ticking higher on the day included Mattel ( MAT ), Funko ( FNKO ), and JAKKS Pacific ( JAKK ).
Update: Shares sold off sharply at midday as the company continued its investor day presentation, wherein management called third quarter comparisons the "most challenging" and softened full-year sales forecasts. Revenue for the year is now expected to be flat to slightly negative. The company expects to take a $60M restructuring charge in the third quarter.
Alongside the slide for Hasbro, many of the aforementioned names marking gains in early trading likewise reversed course.
Keep an eye on other catalysts for the start of October .
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Hasbro stock swings wildly as CEO sets sales, profit targets (update)