Maybe analysts need to get out and play a little more. The pros really blew it in pegging toy maker and Motley Fool Stock Advisor pick Hasbro's
Sure, it's a seasonally sleepy period, but that doesn't mean Wall Street could afford to nap. Earnings surprises -- on both ends -- are bound to happen. Even the best model-crunching analysts aren't usually privy to corporate margin-enhancing initiatives. However, the well-paid pros blew it on the top line too, where channel checks are part of the process.
The real culprit here is underestimating the company's licensing deal with Marvel
With Spider-Man 3 hitting theaters next weekend, the current quarter should be another winner. Two months later, the highly anticipated Transformers movie makes its way to your local multiplex. That's another Hasbro franchise that's a no-brainer to grow later this year.
Hasbro had success with its own lines too, singling out growth in Playskool, Play-Doh, Nerf, Littlest Pet Shop, and board games.
Hasbro's quarter follows last week's surprising earnings report from rival Mattel
Note to analysts: Don't get caught short again in three months.
Hasbro and Marvel are recommendations for Motley Fool Stock Advisor subscribers. Play around with the newsletter by taking a free 30-day trial to see what other stocks are helping the service crush the market.
Longtime Fool contributor Rick Munarriz wonders who will have the hot toys for the 2007 holiday season. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.