Key facts
- Hasbro now expects annual revenue to grow between 5% and 7%.
- Annual adjusted core profit is projected to be between $1.45 billion and $1.50 billion.
- Second-quarter revenue rose 16% to $1.14 billion.
- Wizards of the Coast and Digital Gaming segment revenue increased 27% in the second quarter.
- Hasbro reported a quarterly adjusted profit of $1.28 per share.
Hasbro raised its annual revenue and profit forecasts on Tuesday, driven by strong demand for its digital gaming business and the continued success of its "Magic: The Gathering" franchise. The company's shares rose approximately 2% in premarket trading following the announcement and its beat on second-quarter sales and profit estimates.
The toy maker's performance was bolstered by its Wizards of the Coast and Digital Gaming unit, with the "Magic" franchise being a key driver. Hasbro noted that higher-income consumers continued to spend, helping to offset demand pressures from lower-income households affected by inflation.
CEO Chris Cocks expressed confidence in the "Magic" franchise, stating, "The Magic flywheel is firing on all cylinders." The company now anticipates annual revenue growth in the range of 5% to 7%, an increase from its previous forecast of 3% to 5%. The outlook for annual adjusted core profit has been revised to between $1.45 billion and $1.50 billion, up from $1.40 billion to $1.45 billion.
In the second quarter, Hasbro's revenue climbed 16% to $1.14 billion, surpassing the $1.07 billion estimated by analysts. Revenue within the Wizards of the Coast and Digital Gaming segment saw a 27% increase compared to the same period last year. The company reported a quarterly adjusted profit of $1.28 per share, exceeding the analyst estimate of $1.14 per share. Hasbro also disclosed $11 million in incremental expenses related to a cybersecurity incident in March, with further costs anticipated.