Hasbro Inc (NASDAQ:HAS) shares climbed more than 3% on Wednesday after the company announced second-quarter earnings that far surpassed analyst expectations.
The impressive results were fueled by record-breaking performance from its Magic: The Gathering brand, alongside strong gains in digital gaming.
For Q2, Hasbro posted adjusted earnings of $1.30 per share, well above the consensus estimate of $0.78. Revenue totaled $980.8 million, exceeding analyst forecasts of $874.66 million despite a slight 1% year-over-year decline.
Magic: The Gathering led the charge with revenue soaring 23%, buoyed by the launch of Final Fantasy — the largest set release in Wizards history.
The Wizards of the Coast and Digital Gaming division saw a 16% increase in overall revenue, with Monopoly Go! contributing $44 million during the quarter.
“Hasbro’s return to growth in the first half of 2025 is clear validation that our Playing to Win strategy is working,” said Chris Cocks, Hasbro’s CEO.
“We delivered record-setting results from Magic: The Gathering, alongside strong contributions from our games portfolio, licensing partnerships, and digital initiatives.”
The Consumer Products segment encountered headwinds, with revenue down 16%, though key brands such as Beyblade, Transformers, Monopoly, and licensed products showed growth.
Hasbro raised its full-year outlook, now projecting mid-single-digit revenue growth in constant currency, an upgrade from its earlier “up slightly” forecast.
The company also lifted its adjusted operating margin guidance to 22%-23% from 21%-22%, and raised its adjusted EBITDA target to $1.17-$1.20 billion from $1.1-$1.15 billion.
“We are raising our full-year revenue and adjusted EBITDA guidance, fueled by performance in our Wizards business. Despite a dynamic macro environment, the strength of our diversified business and cost productivity initiatives support our updated outlook,” said Gina Goetter, Hasbro’s CFO and COO.
During the quarter, Hasbro returned $98 million to shareholders through dividends and reduced outstanding debt by $12 million.