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Core Insights - Hasbro, Inc. reported third-quarter fiscal 2025 results with earnings and revenues exceeding Zacks Consensus Estimates, showing a year-over-year revenue increase but a decline in earnings per share [1][10] Financial Performance - Adjusted earnings per share (EPS) for the third quarter were $1.68, surpassing the Zacks Consensus Estimate of $1.66, but down from $1.74 in the same quarter last year [3] - Net revenues reached $1,387.5 million, exceeding the consensus mark of $1,345 million, and reflecting an 8.3% increase from $1,281.3 million in the prior-year period [3] Segment Performance - Consumer Products segment revenues decreased by 7% year over year to $769.9 million, attributed to delayed holiday shelf resets at U.S. retailers [5] - Wizards of the Coast and Digital Gaming segment revenues increased by 42% to $572 million from $404 million in the previous year, with an adjusted operating margin of 44% [6] - Entertainment segment revenues rose by 8% year over year to $18.6 million, with an adjusted operating margin of 60.8% [7] Operating Highlights - Cost of sales as a percentage of net revenues was 29.9%, slightly up from 29.6% in the prior year [8] - Selling, distribution, and administration expenses were $287.3 million, down from $299.3 million a year ago [8] - Adjusted EBITDA was reported at $412.9 million, compared to $406.4 million in the previous year, exceeding the estimate of $373.8 million [8] Balance Sheet and Outlook - As of September 28, 2025, cash and cash equivalents were $620.9 million, down from $696.1 million a year ago, while inventories totaled $396.7 million, up from $375.4 million [11] - Long-term debt decreased to $3.32 billion from $3.46 billion a year earlier [11] - Hasbro raised its 2025 revenue outlook to a high single-digit increase on a constant currency basis, up from mid-single digits, and adjusted EBITDA expectations to $1.24-$1.26 billion [12]

分组1 - Tesla reported mixed third-quarter results with strong revenue but earnings missed expectations, leading to a 4% drop in shares [4][9] - IBM's profit topped expectations, but software revenue was disappointing, causing shares to open down approximately 6% [5][6] - Hasbro raised its full-year sales outlook due to improved demand trends ahead of the holiday season, indicating a positive consumer sentiment [10][40] 分组2 - T-Mobile also raised its outlook based on strong demand for the latest Apple iPhone, reflecting robust consumer spending [10] - The earnings season has shown an 8.5% earnings growth versus an expected 8%, with 15-20% of the S&P reporting [12] - Concerns about margin compression are prevalent, especially among the Magnificent 7 tech companies, which are trading at high multiples despite falling earnings growth [13][19] 分组3 - The toy industry is seeing a split consumer behavior, with high-income households spending freely while lower-income families are more price-sensitive [42][44] - Hasbro's sales have accelerated recently, particularly in action figures and board games, suggesting a strong holiday season ahead [46][48] - The company is focusing on cost savings and maintaining price points under $20 to cater to budget-conscious consumers [49][50] 分组4 - Tesla is positioning itself as an AI company, with plans for aggressive rollouts of robo taxis and humanoid robots by 2026, which could significantly impact its valuation [21][24] - The upcoming earnings report from Intel is anticipated to provide further insights into tech and AI spending trends [7][8] - Small-cap stocks have outperformed large caps since August, indicating potential investment opportunities outside the Magnificent 7 [28]

Core Insights - Hasbro reported $1.39 billion in revenue for Q3 2025, an 8.3% year-over-year increase, with an EPS of $1.68 compared to $1.73 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $1.35 billion by 3.16%, while the EPS also surpassed the consensus estimate of $1.66 by 1.2% [1] Revenue Breakdown - External Net Revenues from Entertainment reached $18.6 million, exceeding the average estimate of $16.91 million, marking an 8.1% year-over-year increase [4] - External Net Revenues from Consumer Products were $796.9 million, below the average estimate of $815.77 million, reflecting a 7.4% year-over-year decline [4] - External Net Revenues from Wizards of the Coast and Digital Gaming totaled $572 million, surpassing the estimated $512.39 million, with a significant year-over-year increase of 41.6% [4] - Within Wizards of the Coast and Digital Gaming, Tabletop Gaming revenues were $441.8 million, exceeding the average estimate of $387.74 million, representing a 48.9% year-over-year increase [4] - Digital and Licensed Gaming revenues reached $130.2 million, slightly above the average estimate of $126.78 million, with a year-over-year change of 21.5% [4] Operating Profit Analysis - Operating profit for Wizards of the Coast and Digital Gaming was $251.5 million, compared to the average estimate of $204.98 million [4] - Operating profit for Consumer Products was $80.1 million, below the average estimate of $107.28 million [4] Stock Performance - Hasbro's shares returned -0.1% over the past month, while the Zacks S&P 500 composite increased by 0.2% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Hasbro Inc. reported third-quarter results that exceeded Wall Street expectations for both earnings and revenue, indicating strong financial performance [1] Financial Performance - The company's earnings and revenue were driven by robust performance in its Wizards of the Coast and digital gaming segments, highlighting the success of these divisions [1]

About this content About Sean Mason Sean Mason is a Senior Journalist at Proactive, having researched and written about Canadian and US equities for 20 years. Sean graduated from the University of Toronto with a BA in history and economics and has also passed the Canadian Securities Course. He previously worked at Investors Digest of Canada, Stockhouse, and SmallCapPower.com. Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and action ...

Financial Data and Key Metrics Changes - Net revenue for Q3 was $1.4 billion, up 8% year-over-year, driven by double-digit growth in Wizards and steady execution across consumer products [10] - Adjusted operating profit increased 8% to $356 million, with an adjusted operating margin of 25.6%, holding steady despite increased cost pressure [10] - Year-to-date revenue is up 7% and adjusted operating profit has increased 14%, reflecting the strength of the diversified portfolio [10] Business Line Data and Key Metrics Changes - Wizards led performance with revenue growth of 42% to $572 million, with Magic revenue increasing 55% to $459 million [11] - Operating profit for Wizards rose 39% to $252 million, achieving a 44% operating margin [11] - Consumer Products revenue was down 7% year-over-year at $797 million, with an adjusted operating profit of $89 million and an 11.2% margin [12] Market Data and Key Metrics Changes - Retail shelf resets since late August led to a mid-single-digit point of sale (POS) increase entering the holiday season [8] - Retail inventories were down mid to high teens in the U.S. coming into Q4, but order books have accelerated compared to previous years [63] Company Strategy and Development Direction - The company is focused on a diversified, digitally forward strategy, with key drivers including Magic: The Gathering, Marvel, and Monopoly [4] - Plans for 2026 include original Magic: The Gathering IP sets and collaborations with popular franchises like Teenage Mutant Ninja Turtles and Star Trek [5] - The company is executing a tariff remediation playbook to mitigate risks and protect profitability, expecting $60 million of impact in 2025 due to tariffs [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining long-term growth through diversified digital initiatives and strategic partnerships [9] - The company raised its full-year guidance, expecting revenue growth in high single digits and adjusted operating profit growth exceeding 20% [16] - Management noted that the growth in Magic and sequential improvement in consumer products are fueling overall financial performance [11] Other Important Information - The company generated $490 million in operating cash flow and returned $294 million to shareholders via dividends [13] - The Board declared a quarterly dividend of $0.70 per share, consistent with capital allocation priorities [17] Q&A Session Summary Question: Q4 outlook and profitability by segment - Management expects modest revenue growth in Consumer Products, with Wizards anticipated to have a strong quarter due to upcoming releases [20][22] Question: Retail positive indicators and consumer behavior - Management noted that retail inventories were down, but POS momentum has accelerated, indicating a positive outlook for the holiday season [26][63] Question: Impact of tariffs on profitability - Tariff pressure in Q3 was approximately $20 million, with expectations of $60 million impact in 2025, but management is actively working to mitigate this [46][49] Question: Growth prospects for Magic: The Gathering - Management highlighted that the Universes Beyond strategy is driving new player engagement and sales, with expectations for continued growth [33][34] Question: Pricing strategy and consumer sensitivity - Pricing has been relatively muted, with a focus on maintaining price points under $20 to cater to consumer demand [36][39]

Financial Performance - Hasbro reported quarterly earnings of $1.68 per share, exceeding the Zacks Consensus Estimate of $1.66 per share, but down from $1.73 per share a year ago, representing an earnings surprise of +1.20% [1] - The company posted revenues of $1.39 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.16% and up from $1.28 billion year-over-year [2] Market Performance - Hasbro shares have increased approximately 34.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 13.9% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.90 on revenues of $1.21 billion, and for the current fiscal year, it is $4.90 on revenues of $4.42 billion [7] - The Zacks Industry Rank for Toys - Games - Hobbies is in the top 14% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] Estimate Revisions - Prior to the earnings release, the estimate revisions trend for Hasbro was favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6]

Financial Performance Highlights - Hasbro's total revenue increased by 8% to $1.388 million in Q3 2025 [8], driven by Wizards of the Coast & Digital Gaming which grew by 42% [7, 14, 15] - Adjusted EPS was $1.68, impacted by a higher tax rate and FX [7] - For the first nine months of 2025, total Hasbro revenues were up 7% to $3,255 million [9, 10], also driven by Wizards and Licensing [9] - Adjusted operating profit for the first nine months increased by 14% year-over-year [9] - Adjusted EPS for the first nine months was $4.03, a $0.47 improvement year-over-year [9] - Q3 2025 net earnings attributable to Hasbro, Inc was $233.2 million [62] Segment Performance - Wizards of the Coast & Digital Gaming revenue increased by 42% in Q3 2025 [7, 14, 15], with tabletop gaming up 49% to $441.8 million [75] and digital and licensed gaming up 21% to $130.2 million [75] - Consumer Products revenue declined by 7% in Q3 2025 [7, 14, 15], but there was growth across brands including PEPPA, Marvel, GI JOE and Beyblade [7] - Entertainment segment revenue increased by 8% in Q3 2025 [14, 15] Inventory and Cash Flow - Total Hasbro owned inventory was up 6% year-over-year in Q3 2025 to $375 million [26, 27] - Operating cash flow declined $98 million year-over-year to $490 million for the first nine months of 2025 [39, 40] Guidance - The company updated its 2025 guidance, expecting net revenues to be up high-single digits in constant currency [41] - Adjusted EBITDA is projected to be between $1.24 billion and $1.26 billion [41]

Company Overview - Hasbro raised its annual revenue and core profit forecasts, driven by strong demand for digital games like "Magic: The Gathering" despite tariff uncertainties affecting the holiday season [1][4] - The company expects annual revenue to increase by high-single-digits, up from previous expectations of mid-single-digit growth [4] - Adjusted EBITDA is projected to be between $1.24 billion and $1.26 billion, an increase from the prior forecast of $1.17 billion to $1.20 billion [4] Financial Performance - Revenue for the third quarter rose 8% to $1.39 billion, surpassing analysts' average estimate of $1.34 billion [4] - The Wizards of the Coast and Digital Gaming segment saw a significant revenue increase of 42%, compared to a 5% decrease in the same quarter last year [5] - Adjusted profit per share was reported at $1.68, exceeding estimates of $1.63 [5] Strategic Initiatives - Hasbro implemented job cuts and a $1 billion cost-savings program earlier in the year to mitigate potential impacts from tariffs [2] - The company aims to reduce its reliance on Chinese imports from 50% to about 40% by 2027 [2] - Finance chief Gina Goetter emphasized the company's agility in managing tariff volatility and maintaining margins through cost productivity and pricing discipline [2] Industry Context - The toy industry faces risks from tariff uncertainties, particularly with a potential 100% duty on Chinese imports looming [1] - Peer company Mattel maintained its annual outlook after missing third-quarter revenue and profit, indicating a cautious approach from retailers [3] - Despite the cautious retail environment, Hasbro's core brands are performing well, contributing positively to the company's outlook [3]