Hasbro rises on strong Q2 earnings, raised full-year outlook
The toymaker’s Wizards of the Coast franchise has cast a winning spell even as overall sales slip.
Hasbro shares jumped as much as 5% in premarket trading before trimming some of those gains after the toymaker topped Q2 estimates and raised its full-year guidance.
Hasbro’s adjusted earnings of $1.30 per diluted share were well above Wall Street’s forecast of $0.78. Revenue hit $980.8 million, also easily beating the $880 million analysts expected. Both figures not only topped the consensus estimate — they topped every analyst’s estimate!
For the full year, Hasbro now expects mid-single-digit revenue growth, up from a prior forecast of “slightly up.” Meanwhile, adjusted EBITDA is expected to land between $1.17 billion and $1.20 billion. It was previously forecast at $1.1 billion to $1.15 billion, and analysts were expecting $1.13 billion.
A huge driver of the strong quarter: Hasbro’s Wizards of the Coast and digital gaming segment, which accounted for over half of total sales during the quarter.
Fan favorite “Magic: The Gathering” saw revenue surge, fueled by its Final Fantasy set, which is now the biggest release in the franchise’s history. The fantasy tabletop card game became Hasbro’s first billion-dollar brand back in 2022.
“Wizards of the Coast had a standout quarter. ‘Magic: The Gathering’ continues to deliver, growing 23% year over year in the second quarter and up 32% year to date,” CEO Chris Cocks said during the company’s earnings call.
“This isn’t just a one-off moment. It’s a clear indication of the power of [the ‘Magic’] community.”
Prior to the earnings move, Hasbro shares were up about 37% year to date.
