Hasbro Shares Posts Strong Quarter Fueled by Magic: The Gathering Growth

Core Insights - Hasbro Inc. reported third-quarter results that exceeded expectations, driven by record performance from its Magic: The Gathering franchise [1] Financial Performance - Adjusted earnings were $1.68 per share, surpassing the consensus estimate of $1.63 [1] - Revenue increased by 8% year-over-year to $1.39 billion, exceeding expectations of $1.35 billion [1] Segment Performance - The Wizards of the Coast segment experienced a 42% revenue increase, with Magic: The Gathering sales jumping by 55% [2] - Growth in the Wizards of the Coast segment was fueled by new releases such as Edge of Eternities and Marvel's Spider-Man, along with strong performance in existing product lines [2] - The Consumer Products division saw a 7% revenue decline due to the timing of U.S. retailer orders related to holiday resets, but there is improving momentum across key brands [3] Profitability - Operating profit rose by 13% to $341 million, attributed to cost control and record gaming revenue [3] - The Wizards of the Coast division achieved a 44% operating margin, indicating high profitability [3] Outlook - Hasbro raised its full-year outlook, now forecasting high-single-digit revenue growth in constant currency and an adjusted operating margin between 22% and 23% [4]