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<blockquote data-quote="Ellorghast" data-source="post: 9220405" data-attributes="member: 7043938">Essentially. When talking about a publicly traded company, being a sustainable business isn't actually good enough, there need to be meaningful year over year earnings gains to propel the stock price higher.(Standard disclaimer before going further: My posts here are for informational purposes only, and should not be taken as financial advice. Invest at your own risk.)Hasbro isn't one of the companies I cover, and the stuff in my first post is based on a fairly cursory look at the company's financial data. In that, you can see that part of the reason Q3 was so good (excluding the write-off) was that they implemented some significant cost savings compared to last year, and even with that, they're still behind for the year so far. That's not what you want to see as an executive. However, I am also looking at some projections from an analyst I work with who does cover Hasbro, and the amount the company's looking to add to its earnings by 2025 through this cost savings plan is far, far more than they'd need to in order to see healthy year over year growth, especially given that they're also offering quite a good dividend yield.This move is absolutely about maximizing shareholder value, and I strongly suspect that the timing of this particular round of layoffs is so the CEO can talk about it on the full-year earnings call to offset the sting of the loss on the sale of eOne. Maybe the worst part is that that loss was, in my assessment, 100% due to failures by management (maybe not current management, but still), but they won't end up paying the price for it, because they're shifting it onto the rank and file.</blockquote>

[QUOTE="Ellorghast, post: 9220405, member: 7043938"] Essentially. When talking about a publicly traded company, being a sustainable business isn't actually good enough, there need to be meaningful year over year earnings gains to propel the stock price higher. (Standard disclaimer before going further: My posts here are for informational purposes only, and should not be taken as financial advice. Invest at your own risk.) Hasbro isn't one of the companies I cover, and the stuff in my first post is based on a fairly cursory look at the company's financial data. In that, you can see that part of the reason Q3 was so good (excluding the write-off) was that they implemented some significant cost savings compared to last year, and even with that, they're still behind for the year so far. That's not what you want to see as an executive. However, I am also looking at some projections from an analyst I work with who [I]does[/I] cover Hasbro, and the amount the company's looking to add to its earnings by 2025 through this cost savings plan is far, far more than they'd need to in order to see healthy year over year growth, especially given that they're also offering quite a good dividend yield. This move is absolutely about maximizing shareholder value, and I strongly suspect that the timing of this particular round of layoffs is so the CEO can talk about it on the full-year earnings call to offset the sting of the loss on the sale of eOne. Maybe the worst part is that that loss was, in my assessment, 100% due to failures by management (maybe not current management, but still), but they won't end up paying the price for it, because they're shifting it onto the rank and file. [/QUOTE]

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