Hasbro (HAS) may have handled its bad news and built a bullish outlook for 2019.
Shares of Hasbro have trended downward on Friday after its big earnings miss on the pivotal holiday season, but this might end up being a good thing for the stock moving forward, according to some analysts.
"This could signal a bullish go-forward," D.A. Davidson analyst Linda Bolton Weiser told Real Money. "This was really about clearing inventory and taking out that impact from Toys R Us. Toys R Us can only go out of business once."
She made clear that the timing of Toys R Us bankruptcy later in 2018 means that the impact will still reverberate to first quarter comps, but that both Hasbro and Mattel (MAT) were already pulling back shipments.
"I talked to Mattel and I can say that the shipping numbers to Toys R Us were very small," Weiser said.
Weiser's take is in line with the broader analyst community, which maintained a steadfast "Buy" rating on the stock despite Friday's fall in share price.
Her analysis also echoes that of Real Money contributor Stephen "Sarge" Guilfoyle who noted he saw opportunity amidst Hasbro's horrible earnings result.
"The inventory issue is thankfully a one-time thing," he noted. "There will be more Marvel movies. Walt Disney (DIS) did not go anywhere. CEO Brian Goldner points towards the next innovation cycle for Nerf, and a new Power Rangers line due in Q2 2019. I don't know if these toys turn the corner for the firm on their own, but they will help generate interest while waiting for the movie tie-ins to carry them past the goal line."
Guilfoyle added that the dividend increase provides further incentive to more skittish investors.
In the tale of two toy makers, he actually favors Hasbro at this point due to its risk-reward profile.
"For the aggressive, Hasbro bears greater potential reward, but they really need a national retailer like Walmart (WMT) or Target (TGT) to feature toys to a greater degree than they already have," Guilfoyle explained.
It is worth noting that Hasbro does maintain a strong partnership with e-commerce king Amazon (AMZN) , but Guilfoyle was skeptical on this impact on the toy trade specifically.
"E-commerce just does not lend itself to pleading children pressuring their parents in the way an aisle full of toys will," he said.
For more on his ideas for options plays for less risk-averse investors click here.