Hasbro shares soar as “Magic” cards and strong margins power up a big earnings beat
The toy giant’s high-margin licensing deals are paying off — even as tariff risks loom.
Hasbro jumped over 15% on Thursday after the toy maker delivered a first-quarter earnings beat that easily topped Wall Street expectations.
Adjusted earnings per share hit $1.04, blowing past the $0.67 analysts were looking for. Meanwhile, revenue hit $887 million, also well above estimates of $771 million. Hasbro credited the strong showing to its pivot toward higher-margin businesses — including licensing deals and a boost from its “Magic: The Gathering” trading cards.
The company’s Wizards of the Coast and digital gaming division led the charge, with revenue in the gaming segment spiking 46% over the same quarter last year. That helped Hasbro notch an adjusted profit margin of 25.1% for the quarter, up from 19.6% a year ago. Hasbro’s also leveling up its IP game with a new toy and game licensing agreement with Disney, covering blockbuster franchises like “Star Wars” and Marvel.
The new deal strengthens Hasbro’s long-term positioning in fantasy and franchise-driven toys. Hasbro also kept its profit outlook but said its estimates didn’t include tariff impacts, since trade negotiations between the US and China are still up in the air. But even as tariff concerns linger, analysts expect those cost pressures to be “mostly offset” by Hasbro’s internal savings and continued growth in its Wizards business.
With Thursday’s rally, Hasbro shares are on track to be the best-performing S&P 500 stock today and are now positive on the year.