Why Hasbro Stock Soared Today

Core Insights - Hasbro's stock surged 13.2% after significantly exceeding analyst expectations for sales and earnings, reporting earnings of $0.46 per share and sales of $1.1 billion, compared to expectations of $0.35 per share and just over $1 billion in sales [1][2] Financial Performance - Despite beating estimates, Hasbro experienced a 15% year-over-year decline in sales, primarily due to the divestiture of its eOne media and production business, while its Wizards of the Coast subsidiary saw a 7% sales decrease [2] - On a GAAP basis, Hasbro reported a loss of $0.25 per share for the quarter, with a full-year sales decline of 17%, although Wizards of the Coast achieved a 4% sales growth, and full-year earnings were positive at $2.75 per share [3] Future Outlook - Hasbro provided updated guidance, forecasting an end to revenue declines with slight revenue growth in constant currency, and projected adjusted EBITDA between $1.1 billion and $1.15 billion for the coming year [4] - If Hasbro meets its targets and achieves earnings of $5.50 per share, the current share price of $70 would reflect a price-to-earnings valuation of 12.7x, which is considered attractive compared to Wall Street's forecasts for 2025 earnings [5]