During the second quarter, Hasbro’s Wizards and Digital Gaming segment saw 27% revenue growth from last year.
- During the second quarter, total revenue came in at $1.14 billion, and adjusted earnings per share were $1.28.
- For the full year, the company now expects total revenue to rise 5% to 7% in constant currency.
- Direct incremental expenses related to the March data breach were $11 million, and the revenue impact was estimated at about $25 million.
Shares of toymaker Hasbro (HAS) surged on Tuesday after the company reported a strong second quarter, driven by its main cash cow, the Wizards of the Coast unit, and increased its full-year forecast.
At the time of writing, HAS stock was up nearly 10% and on track for its biggest single-day percentage gains in nearly fifteen months.
Magic Flywheel ‘Firing On All Cylinders’
Hasbro’s chief executive officer Chris Cocks touted the outperformance seen within the WotC unit, which is popular for fantasy tabletop role-playing games, Magic: The Gathering and Dungeons and Dragons.
“Magic: The Gathering eclipsed $500 million in quarterly revenue for the first time in its 30-plus year history, led by the record-breaking debut of Marvel Super Heroes. With strong indications for our remaining releases and line of sight to continued growth in 2027, the Magic flywheel is firing on all cylinders.”
HAS Q2 Results At A Glance
During the second quarter, Hasbro’s Wizards and Digital Gaming segment saw 27% revenue growth from last year, while Consumer Products, the unit that sells NERF guns and board games like Scrabble and Monopoly, among other products, saw a 5% increase. Those gains masked a 20% decline in the Entertainment segment, which creates content based on its intellectual property, most notably Peppa Pig and Transformers.
Total revenue rose 16% to $1.14 billion, and came ahead of the $1.07 billion consensus estimate polled by Fiscal AI. Adjusted earnings per share (EPS) were $1.28, beating the consensus estimate of an EPS of $1.13.
For the full year, the company now expects total revenue to rise 5% to 7% in constant currency, revised from 3% to 5% previously guided, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) between $1.45 billion and $1.50 billion, increased from $1.40 billion and $1.45 billion, with the midpoint of the new range coming ahead of the consensus estimate of $1.46 billion.
Debt, Dividends, And Data Breach Updates
During the quarter, the company set aside $55 million to pay down debt. According to its balance sheet, long-term debt as of June 28 was $3.04 billion.
The company paid stockholders $99 million in cash dividends, which equates to a second-quarter cash dividend of $0.70 per common share payable on September 2 and to shareholders of record on August 19.
In late March, Hasbro identified a data breach of its network, which it has since contained. Direct incremental expenses related to the incident were $11 million during the three and six months ended June 28, and the revenue impact was estimated at about $25 million. Hasbro expects to incur additional costs in the coming quarters.
On Stocktwits, retail sentiment about HAS turned ‘bullish’ from ‘neutral’ over the last 24 hours. HAS stock has gained over 9% so far this year and is up more than 18% over the past 12 months, outperforming the S&P 500 by a slight margin.
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