What's the opportunity for Hasbro over [music] the next decade that excites you most. >> I would say everything that we're doing in the gaming space. [music] So, while it is uh it is riskier than probably launching another toy or another Magic set, where we're headed on the broad definition of gaming is is super exciting.I think that that is going to be the single biggest unlock for our company. moving us away from being just Hasbro is a toy company to no Hasbro is a play and we're a game. ...

Core Insights - Wizards of the Coast, a subsidiary of Hasbro Inc., announced the development of WARLOCK: DUNGEONS & DRAGONS, a third-person single-player action-adventure game set in a dark fantasy open world inspired by Dungeons & Dragons [1][4] - The game features a protagonist named Kaatri, a veteran warrior who uses otherworldly magic to combat dark forces, with performance capture by actress Tricia Helfer [1][2] - WARLOCK is being developed for PC, PlayStation 5, and Xbox, with gameplay details expected to be revealed in summer 2026 and a planned launch in 2027 [4] Game Development and Features - WARLOCK allows players to utilize magic to navigate challenges, combining spellcasting and melee combat for a tactical experience [2] - The game is being developed by Invoke Studios, which has a history of working on acclaimed franchises such as Far Cry and Watch Dogs [5] - The narrative emphasizes the cost of wielding powerful magic, aligning with the themes of danger and wonder central to Dungeons & Dragons [4] Company Background - Wizards of the Coast is known for developing and publishing games that inspire creativity and build communities, with notable franchises including MAGIC: THE GATHERING and DUNGEONS & DRAGONS [6] - The company operates a diverse studio network, including first-party developers and co-venture partners, to create engaging gaming experiences across various platforms [7]

Core Insights - The new trailer for EXODUS was unveiled at The Game Awards, showcasing the protagonist Jun Aslan on a quest to save a collapsing world [1] - EXODUS is set to release in early 2027, highlighting a narrative that emphasizes humanity's resilience and the impact of player choices on the story [7] Company Overview - Archetype Entertainment, a division of Wizards of the Coast, was established in 2019 and is developing the EXODUS RPG, featuring a team of veteran developers from renowned studios [8] - Wizards of the Coast, a subsidiary of Hasbro, is known for creating games that inspire creativity and build communities, with popular franchises like MAGIC: THE GATHERING and DUNGEONS & DRAGONS [9] Game Features - Players will influence Jun's destiny through moral choices, with gameplay allowing for both stealth and open combat approaches [3][4] - The game will include companions with unique motivations, enriching the narrative with additional lore and quests [5] - The character C.C. Orlev, voiced by Matthew McConaughey, plays a significant role in guiding Jun throughout his journey [6]

The Zacks Toys - Games - Hobbies industry is hurt by elevated production and logistics costs, as well as shifting consumer spending. However, strong franchise and licensing partnerships, robust e-commerce and omnichannel sales, and consistent innovation in product categories bode well. The robust demand for smart toys, STEM (science, technology, engineering and math) toys, sports toys, and fashion dolls and accessories bodes well. Industry participants have been focusing on the better execution of marketing ...

Core Insights - Hasbro is actively integrating artificial intelligence (AI) into its operations, with a focus on enhancing efficiency in information processing and decision-making [1][4][5] - The CFO and COO of Hasbro, Gina Goetter, emphasizes the importance of AI tools like ChatGPT in synthesizing large volumes of information quickly, particularly in financial contexts [2][3] - The company is fostering a culture of AI adoption at all levels, encouraging employees to utilize AI solutions as part of their daily tasks [4][5] AI Applications in Finance - AI is being leveraged by CFOs, including Goetter, to streamline the analysis of banker recommendations and prepare for meetings more effectively [2][3] - Demand planning at Hasbro has transitioned to an "almost entirely AI-driven" process, moving away from traditional spreadsheet methods [6] Company Strategy and Leadership - Hasbro's management, including Goetter and CEO Chris Cocks, is committed to embracing AI as a core component of the company's operational strategy [4][5] - Goetter has been in her dual role as CFO and COO since May 2023, and the company is relocating its headquarters to Boston from Pawtucket, Rhode Island [5]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2][7] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow to find attractive investment opportunities [3] Growth Score - The Growth Score emphasizes a company's financial health and future potential, analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [4] Momentum Score - The Momentum Score is designed for traders who capitalize on price trends, using metrics like one-week price changes and monthly earnings estimate changes to identify high-momentum stocks [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, serving as a comprehensive indicator to identify stocks with the best overall potential [6] Zacks Rank Integration - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][10] - To optimize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering earnings estimate trends [9][10] Company Spotlight: Hasbro Inc. - Hasbro Inc., based in Pawtucket, RI, specializes in designing, manufacturing, and marketing games and toys, with a diverse product range under well-known brands [11] - Currently rated 3 (Hold) by Zacks, Hasbro has a VGM Score of A and a Momentum Style Score of B, with shares increasing by 1.6% over the past four weeks [12] - Recent upward revisions in earnings estimates by five analysts for fiscal 2025 have raised the Zacks Consensus Estimate by $0.12 to $5.01 per share, alongside an average earnings surprise of +36% [12]

Financial Performance - Hasbro's net revenues for Q3 2025 increased by 8.3% to $1,387.5 million from $1,281.3 million in Q3 2024, driven primarily by a 41.6% growth in the Wizards of the Coast and Digital Gaming segment [131]. - The company reported an operating profit of $341.1 million for Q3 2025, representing 24.6% of net revenues, compared to $301.9 million or 23.6% in Q3 2024 [143]. - Total net revenues increased by 7.3% to $3,255.4 million for the first nine months of 2025, up from $3,033.9 million in 2024, with significant growth in the Wizards of the Coast and Digital Gaming segment [180]. - The Wizards of the Coast and Digital Gaming segment net revenues increased by 32.8% to $1,556.5 million for the first nine months of 2025, driven by strong demand for tabletop gaming products [181]. - The Consumer Products segment net revenues decreased by 8.9% to $1,637.6 million for the first nine months of 2025, primarily due to declining sales volumes for brands like NERF and PLAY-DOH [183]. Segment Performance - The Grow Brands portfolio saw a revenue increase of $167.0 million, or 19.9%, in Q3 2025, primarily due to strong performance from MAGIC: THE GATHERING, which grew by $163.2 million, or 55.1% [132][135]. - Operating profit for the Wizards of the Coast and Digital Gaming segment rose to $251.5 million, or 44.0% of segment net revenues, compared to $181.2 million, or 44.9%, in the prior year [152]. - The Consumer Products segment experienced a revenue decline of $63.2 million, or 7.3%, in Q3 2025, indicating challenges in this area [131]. - Entertainment segment net revenues increased by 8.1% to $18.6 million in Q3 2025, driven by streaming renewals and investments in the PEPPA PIG brand [155]. - The Reinvent Brands portfolio revenues decreased by 19.3% to $354.3 million in the first nine months of 2025, primarily due to lower sales of NERF products and decreased licensing revenues for MY LITTLE PONY [162]. Expenses and Costs - Selling, distribution, and administration expenses decreased to $287.3 million, or 20.7% of net revenues, in Q3 2025, down from $299.3 million, or 23.4% in Q3 2024, due to cost savings initiatives [142]. - Cost of sales for the first nine months of 2025 was $844.1 million, or 25.9% of net revenues, compared to $820.8 million, or 27.1% of net revenues, for the same period in 2024, reflecting improved supply chain efficiencies [163]. - Product development expenses rose to $255.6 million, or 7.9% of net revenues, for the first nine months of 2025, compared to $212.2 million, or 7.0% of net revenues, in 2024, due to higher investments in Grow Brands [166]. - Advertising expenses increased to $227.3 million, or 7.0% of net revenues, for the first nine months of 2025, from $213.8 million, or 7.0% of net revenues, in 2024, primarily to support growth in the Grow Brands category [167]. Cash Flow and Debt - Net cash provided by operating activities was $490.0 million in the first nine months of 2025, down from $587.6 million in the same period of 2024, a decrease of $97.6 million attributed to changes in net working capital and tariffs [200]. - Net cash utilized for investing activities was $191.8 million in the first nine months of 2025, significantly lower than $635.4 million in the same period of 2024, with long-term investments of $55.2 million made in 2025 [201]. - Net cash utilized by financing activities was $375.1 million in the first nine months of 2025, compared to a cash inflow of $190.8 million in 2024, primarily due to $294.2 million in dividends paid [202]. - The Company had $3.3 billion of long-term debt due from 2026 through 2044, with $65.0 million of outstanding debt repurchased during 2025 [196]. - The Company is exposed to approximately $20 million in tariffs during the first nine months of 2025, which may impact future financial results [192]. Strategic Initiatives - The company plans to relocate its Rhode Island operations to Boston, Massachusetts, expected to be completed in Q4 2026, to enhance innovation and attract talent [120]. - Hasbro's Playing to Win strategy includes five strategic building blocks aimed at expanding consumer reach and driving profitability through innovation and partnerships [118][121]. Market Risks and Economic Factors - The Company continues to monitor the impact of trade policy changes and tariffs on its operations, which could adversely affect financial results [123]. - The Company is monitoring inflation's impact on its operations and may need to implement price adjustments to mitigate future inflation effects [214]. - Future volatility in general price inflation could negatively affect consumer purchases and spending on entertainment [214]. - The impact of inflation on material costs, shipping, warehousing, and operational overhead could adversely affect the Company's financial results [214].

Core Viewpoint - The investment outlook for Hasbro Inc. (HAS) remains positive, with expectations for continued earnings growth serving as a catalyst for increasing multiples [1] Group 1: Investment Strategy - The investment approach is centered on long-term investments while also utilizing short-term shorts to identify alpha opportunities [1] - The analysis is based on a bottom-up approach, focusing on the fundamental strengths and weaknesses of individual companies [1] - The investment duration is categorized as medium to long-term, aiming to identify companies with solid fundamentals and sustainable competitive advantages [1]

Core Viewpoint - The investment outlook for Hasbro Inc. (HAS) remains positive, with expectations for continued earnings growth serving as a catalyst for increasing multiples [1] Group 1: Investment Strategy - The investment approach is centered on long-term investments while also utilizing short-term shorts to identify alpha opportunities [1] - The analysis is based on a bottom-up approach, focusing on the fundamental strengths and weaknesses of individual companies [1] - The investment duration is categorized as medium to long-term, aiming to identify companies with solid fundamentals and sustainable competitive advantages [1]

Legal and Economic Implications - The Supreme Court is set to deliberate on the legality of Trump's tariffs, with businesses and states challenging his authority under the International Emergency Economic Powers Act (IEEPA) [2] - A ruling against the administration could result in the government needing to refund $100 billion in tariff revenue and potentially losing billions annually [3] - Treasury Secretary Steven Mnuchin anticipates the Supreme Court will uphold the tariffs but has contingency plans involving other statutes that could allow tariffs of up to 50% [3] Market Reactions and Performance - The stock market's recent surge is attributed to the "artificial-intelligence mania," particularly driven by tech giants like Nvidia and Microsoft, rather than tariffs [4] - On November 4, 2025, the S&P 500 closed at 6,771.55, down 1.17%, while the Nasdaq Composite fell 2.04% to 23,348.64, and the Dow Jones Industrial Average decreased by 0.53% to 47,085.24 [4] - Trump's tariff decisions have cumulatively subtracted $4.7 trillion from the market value of the S&P 500 between November 2024 and April 2025, including a $2 trillion hit to the "Magnificent Seven" tech companies [5] Industry-Specific Impacts - The entertainment industry is facing a 100% tariff on foreign-made movies, leading to significant stock declines for companies like Netflix (down 3.3%) and Walt Disney (down 1.5%) [6] - The toy industry has seen tariffs as high as 22.4% for baby items and 20% for toys, resulting in price hikes and potential closures of small businesses [7] - Pharmaceutical giant Johnson & Johnson revised its expected tariff impact for 2025 from $400 million to $200 million, indicating that tariffs could disrupt drug supply chains [8] Broader Market Sentiment - Analysts express concerns over Trump's use of emergency powers for tariffs, with warnings about "overheated valuations" in the tech sector and a possible market correction of 10-20% [9] - Trump's social media commentary often contrasts with actual market performance, as seen in his claims of record highs despite recent market dips [9] - The parent company of Truth Social, Trump Media & Technology Group, has experienced significant stock volatility, reflecting broader market trends [10]