Shares of Hasbro, Inc. (NASDAQ:HAS), a global manufacturer of toys, games, and other consumer entertainment products, jumped as high as 18% Monday morning after the toymaker's CEO, Brian Goldner, had positive things to say on CNBC.
Monday morning, Goldner found himself on CNBC's Squawk Box, and reported, "Overall we are seeing great demand in our products."
Goldner continued, "In fact, our supply chains are back up and running in China." Goldner also noted the company was catching up on production, which should be fully caught up in April, and that the company was in solid financial shape with no anticipated employee layoffs. The optimistic interview was enough to send the stock higher after COVID-19 coronavirus fears have hammered the stock since February.
Goldner's comments suggested that the first quarter was much better than many investors expected. Remember, it was only late February when Hasbro warned investors the COVID-19 outbreak could significantly impact its revenue, profitability, and overall business. While Goldner's comments were welcomed and positive, it's also important for investors to realize the COVID-19 outbreak is still very uncertain and fluid.
We still have little clue how negative the economic impact will be, and how hard it will hit certain industries, such as toy manufacturers. Savvy investors understand that markets will almost certainly rebound over time from significant declines, and this is merely a time to double check your investing thesis and focus on finding companies with solid balance sheets and strong economic moats.