Hasbro lifts FY26 outlook after Magic: The Gathering drives Q2 beat

Hasbro Inc (NASDAQ:HAS) raised its full-year gross and nett forecasts connected Tuesday aft second-quarter results topped Wall Street estimates, powered by a grounds 4th for its Magic: The Gathering trading paper franchise.

The toymaker posted adjusted net of $1.28 per share, beating expert estimates of $1.13, portion gross climbed 16% year-over-year to $1.14 billion, up of the $1.06 cardinal expected by analysts.

Shares of Hasbro roseate 10% successful Tuesday greeting trading.

Magic: The Gathering gross surged 32% to apical $500 cardinal successful a azygous 4th for the archetypal clip successful the franchise's much than 30-year history, driven by request 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 cardinal successful revenue, with operating nett up 12% to $270 million. Mobile crippled Monopoly Go contributed $44 cardinal successful gross for the quarter.

Consumer Products gross roseate 5% contempt a astir $25 cardinal deed from a antecedently disclosed cyberattack that besides added $11 cardinal successful expenses, the institution said. Entertainment conception gross fell 20%.

"Revenue exceeded Street expectations, though profitability remained pressured by tariff expense, entertainment-related premix shifts, and mean seasonality," Jefferies said of the segment. "Notably, absorption estimated the cyber lawsuit reduced gross by astir $25M during the quarter, suggesting underlying request was somewhat stronger than reported."

Hasbro recorded a $56 cardinal impairment tied to its integer games concern during the quarter. The institution returned $133 cardinal to shareholders and paid down $55 cardinal successful debt, and said it plans to thin further into its $1 cardinal stock repurchase authorization.

For the afloat year, Hasbro present expects gross maturation of 5% to 7% connected a changeless currency basis, up from its anterior forecast of 3% to 5%. The institution raised its adjusted operating borderline outlook to 25% to 26%, from 24% to 25% previously, and present sees adjusted EBITDA of $1.45 cardinal to $1.5 billion, up from $1.4 cardinal to $1.45 billion.