Hasbro Inc (NASDAQ:HAS) raised its full-year revenue and profit forecasts on Tuesday after second-quarter results topped Wall Street estimates, powered by a record quarter for its Magic: The Gathering trading card franchise.
The toymaker posted adjusted earnings of $1.28 per share, beating analyst estimates of $1.13, while revenue climbed 16% year-over-year to $1.14 billion, ahead of the $1.06 billion expected by analysts.
Shares of Hasbro rose 10% in Tuesday morning trading.
Magic: The Gathering revenue surged 32% to top $500 million in a single quarter for the first time in the franchise's more than 30-year history, driven by demand for its Marvel Super Heroes and Secrets of Strixhaven sets. The Wizards of the Coast and Digital Gaming segment, which includes Magic, grew 27% to $664 million in revenue, with operating profit up 12% to $270 million. Mobile game Monopoly Go contributed $44 million in revenue for the quarter.
Consumer Products revenue rose 5% despite a roughly $25 million hit from a previously disclosed cyberattack that also added $11 million in expenses, the company said. Entertainment segment revenue fell 20%.
"Revenue exceeded Street expectations, though profitability remained pressured by tariff expense, entertainment-related mix shifts, and normal seasonality," Jefferies said of the segment. "Notably, management estimated the cyber event reduced revenue by approximately $25M during the quarter, suggesting underlying demand was somewhat stronger than reported."
Hasbro recorded a $56 million impairment tied to its digital games business during the quarter. The company returned $133 million to shareholders and paid down $55 million in debt, and said it plans to lean further into its $1 billion share repurchase authorization.
For the full year, Hasbro now expects revenue growth of 5% to 7% on a constant currency basis, up from its prior forecast of 3% to 5%. The company raised its adjusted operating margin outlook to 25% to 26%, from 24% to 25% previously, and now sees adjusted EBITDA of $1.45 billion to $1.5 billion, up from $1.4 billion to $1.45 billion.
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