Hasbro beats profit forecasts and raises full-year revenue guidance

what happened

Hasbro reported quarterly results above expectations and lifted its full-year revenue outlook, according to Seeking Alpha. Revenue rose 15.1% from a year earlier to $1.6 billion, topping the consensus estimate by $120 million. Adjusted operating profit climbed 52% to $541 million, and adjusted EBITDA reached $604.5 million against an expected $445 million.

Non-GAAP earnings per share came in at $2.90, versus $1.85 in consensus and $1.68 a year earlier. The Wizards of the Coast and digital gaming segment was the main driver, with revenue up 31% and Magic: The Gathering topping $600 million in quarterly revenue for the first time. The company now expects revenue to grow 7% to 9% in constant currency, up from its previous 5% to 7% range. Shares were up 0.5% in premarket trading on Tuesday.

why it matters

The strong report suggests the licensing model and Magic's growth give the company a cushion. The expected adjusted operating margin of 27% to 28% and adjusted EBITDA of $1.575 billion to $1.625 billion set a benchmark for the rest of the year. Investors will watch how durable growth in the gaming business proves to be.

market impact

HAS: strong revenue and a higher outlook support Hasbro shares and the toys and entertainment sector

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