Hasbro posts revenue beat as Magic: The Gathering drives earnings beat

Investing.com -- Hasbro Inc (NASDAQ:HAS) reported better-than-expected third-quarter results on Thursday, driven by record performance from its Magic: The Gathering franchise.

The company posted adjusted earnings of $1.68 per share, exceeding analyst estimates of $1.63. Revenue climbed 8% to $1.39 billion, topping the consensus forecast of $1.35 billion.

Wizards of the Coast, Hasbro’s tabletop and digital gaming division, led the company’s growth with a 42% revenue increase, fueled by a remarkable 55% surge in Magic: The Gathering sales. The trading card game’s success stemmed from new releases including "Edge of Eternities" and "Marvel’s Spider-Man," alongside strong performance from existing products.

"Hasbro delivered another quarter of growth, highlighting the strength of our brands and Playing to Win strategy," said CEO Chris Cocks. "Wizards of the Coast led the way as Magic: The Gathering continues to break records."

The company’s Consumer Products segment saw a 7% revenue decline, which Hasbro attributed to U.S. retailer order timing related to later holiday shelf resets. Despite this expected softness, the company noted building momentum across many brands heading into the holiday season.

Operating profit rose 13% to $341 million, reflecting the record Magic performance and cost discipline. The Wizards of the Coast segment achieved a 44% operating margin, demonstrating the high profitability of Hasbro’s gaming business.

Based on the strong performance, Hasbro raised its full-year outlook, now expecting high-single-digit revenue growth in constant currency and an adjusted operating margin of 22%-23%.

"We managed tariff volatility with agility, protected margins through cost productivity and pricing discipline, and continued to advance our transformation initiatives," said Gina Goetter, Hasbro’s Chief Financial Officer and Chief Operating Officer.

The company maintained its quarterly dividend of $0.70 per share, returning $98 million to shareholders during the quarter.