Hasbro, Inc. (NASDAQ:HAS) reported its Q4 and full 2021-year results, with quarterly EPS and revenues of $1.21 and $2.01 billion coming in better than the Street estimates of $0.86 and $1.87 billion, respectively.

Annual revenue of $6.42 billion increased 17% year-over-year and adjusted EPS of $5.23 came in 8% above the consensus estimate. According to the analysts at Berenberg Bank, the upside was largely driven by entertainment, up 27% for 2021, and continued momentum of the Wizards of the Coast segment, up 42% for 2021.

The analysts mentioned two key premises for their bullish thesis on the company:

(1) In the short term, demand for consumer products and Wizards of the Coast & Digital Gaming products is expected to remain resilient,

(2) In the long term, post-pandemic, the pent-up supply of entertainment content should translate to continued, above-average growth and compare favorably to peers.

The analysts believe that the company will maintain consumer product margins as the pricing actions are scheduled to take effect in Q2/22. Furthermore, they believe the company will maintain operating margins at the company level (around 16%), given that the Wizards of the Coast segment and entertainment (around 38% of revenue) are largely immune to supply chain disruptions.