Hasbro, Inc. (NASDAQ:HAS) shares are trading lower in the premarket session on Thursday after the company reported an upbeat third quarter with strong Wizards-led growth, solid profits, and a raised full-year outlook.
The company reported third-quarter adjusted earnings per share of $1.68, beating the analyst consensus estimate of $1.63.
Quarterly sales of $1.387 billion (+8% year over year) beat the Street view of $1.342 billion.
The revenue growth was driven by double-digit growth in Wizards and Digital Gaming, partially offset by expected softness in Consumer Products tied to U.S. retail order timing.
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Quarterly Profits
Operating profit rose 13% year-over-year to $341 million, while adjusted operating profit climbed 8% to $356 million, driven by record MAGIC performance, cost discipline, and operating leverage.
Adjusted operating margin in the quarter under review contracted to 25.6% from 25.7% a year ago.
Adjusted EBITDA in the third quarter was $412.9 million, higher than $406.4 million in the year-ago period.
“We managed tariff volatility with agility, protected margins through cost productivity and pricing discipline, and continued to advance our transformation initiatives. These actions position Hasbro to close the year from a position of strength, and we remain firmly on track to achieve our mid-term financial commitments,” said Gina Goetter, Hasbro’s chief financial officer and chief operating officer.
Segments
Hasbro’s Wizards of the Coast and Digital Gaming segment grew revenue 42%, powered by MAGIC: THE GATHERING up 55% and licensed digital gaming up 21%.
Consumer Products revenue fell 7%, matching expectations due to U.S. retailer order timing from later holiday shelf resets.
Entertainment segment revenue rose 8% in the quarter, reflecting deal timing across the portfolio.
The company exited the quarter with cash and equivalents worth $620.9 million.
Outlook
Hasbro raised its full-year outlook, now expecting high-single-digit revenue growth in constant currency, up from mid-single-digit. The company projects an adjusted operating margin between 22% and 23%.
Adjusted EBITDA guidance increased to $1.24–$1.26 billion from $1.17–$1.20 billion.
Price Action: HAS shares are trading lower by 0.61% to $74.70 premarket at last check on Thursday.
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