Company Overview - Hasbro, Inc. has a market cap of $12.1 billion and is a global toy and game company offering a diverse range of products including action figures, dolls, trading cards, and creative play items. The company also develops entertainment content and partners with digital game developers, featuring well-known brands such as NERF, TRANSFORMERS, DUNGEONS & DRAGONS, PLAY-DOH, and STAR WARS [1] Financial Performance - Analysts predict that Hasbro will report an adjusted EPS of $0.97 for fiscal Q4 2025, representing a significant increase of 110.9% from $0.46 in the same quarter last year. The company has consistently surpassed Wall Street's earnings estimates over the last four quarters [2] - For fiscal 2025, analysts forecast an adjusted EPS of $5.01, which is a 24.9% increase from $4.01 in fiscal 2024 [3] Stock Performance - Over the past 52 weeks, Hasbro's shares have increased by 49.3%, outperforming the S&P 500 Index's return of 16.9% and the State Street Consumer Discretionary Select Sector SPDR ETF's rise of 8.2% [4] Recent Developments - On October 23, Hasbro's shares rose by 3.7% following the announcement of strong Q3 2025 results, with revenue increasing by 8% year over year and operating profit rising by 13% to $341 million. This growth was driven by a 42% revenue surge in the Wizards of the Coast and Digital Gaming segment, with MAGIC: THE GATHERING revenue jumping 55% and an adjusted EPS of $1.68, showcasing a high operating margin of 44% in the Wizards segment [5] - Hasbro has raised its full-year outlook, projecting high-single-digit revenue growth, adjusted operating margins of 22% - 23%, and adjusted EBITDA of $1.24 billion - $1.26 billion [6] Analyst Sentiment - The consensus view among analysts on Hasbro stock is bullish, with a "Strong Buy" rating overall. Out of 13 analysts covering the stock, 10 recommend "Strong Buy," one suggests "Moderate Buy," and two indicate "Hold." The average analyst price target for Hasbro is $94.08, suggesting a potential upside of 9.1% from current levels [6]

Core Viewpoint - Hasbro, Inc. is a leading global toy and game company with a market cap of $11.4 billion, offering a diverse range of products and expanding its brands through digital gaming and entertainment content [1][2]. Financial Performance - In Q3 2025, Hasbro reported an 8% year-over-year revenue increase and a 13% rise in operating profit to $341 million, driven by a 42% revenue surge in the Wizards of the Coast and Digital Gaming segment [5]. - The revenue from MAGIC: THE GATHERING increased by 55%, with an adjusted EPS of $1.68 and a high operating margin of 44% in the Wizards segment, indicating strong profitability [5]. - Hasbro raised its full-year outlook, projecting high-single-digit revenue growth, adjusted operating margins of 22% - 23%, and adjusted EBITDA of $1.24 billion - $1.26 billion [6]. Stock Performance - Shares of Hasbro have slipped 3.8% from their 52-week high of $85.14 but have gained 9.4% over the past three months, outperforming the Dow Jones Industrials Average's 4.4% rise [3]. - Year-to-date, HAS stock is up 46.5%, significantly exceeding the Dow Jones's 13.2% gain, and has surged nearly 41% over the past 52 weeks compared to the Dow's 13.8% return [4]. - Analysts maintain a consensus "Strong Buy" rating for HAS stock, with a mean price target of $92.50, representing a 13% premium to current levels [7].

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]

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]

Q2 2025 Financial Performance - Hasbro's total revenue decreased by 1% to $981 million in Q2 2025, with growth in Wizards of the Coast & Digital Gaming offset by declines in Consumer Products [7] - Wizards of the Coast & Digital Gaming segment revenue increased by 16% to $522 million, driven by MAGIC: THE GATHERING and Monopoly Go! [6, 13] - Consumer Products segment revenue declined by 16% to $442 million, despite growth in consumer products licensing [6, 13] - Hasbro reported a net loss of $856 million, or $6.10 per share, impacted by a $1022 million non-cash goodwill impairment [7, 6] - Adjusted EPS was $1.30, an $0.08 improvement compared to Q2 2024 [6] - Adjusted operating profit was approximately flat year-over-year at $247 million, driven by favorable business mix and improved cost structure [6, 7] - EBITDA was a loss of $742 million, while adjusted EBITDA was $302 million, a decrease of 4% [7] YTD 2025 Financial Performance - Hasbro's total revenue increased by 7% to $1868 million for the first six months of 2025, with momentum in Wizards and licensing offsetting declines in Consumer Products [8, 10] - Wizards of the Coast & Digital Gaming segment revenue increased by 28% to $985 million [8, 16] - Consumer Products segment revenue declined by 10% to $841 million [8, 16] - Hasbro reported a net loss of $757 million, or $5.41 per share, impacted by a $1022 million non-cash goodwill impairment [8, 10] - Adjusted EPS was $2.35, a $0.52 improvement compared to 1H 2024 [8] - Adjusted operating profit increased by 18% to $470 million, driven by higher revenues and favorable business mix [8, 10] - EBITDA was a loss of $530 million, while adjusted EBITDA was $576 million, an increase of 19% [10] 2025 Guidance - Hasbro updated its FY 2025 guidance, projecting net revenues to be up mid-single digits in constant currency [40] - Adjusted operating margin is expected to be between 22% and 23% [40] - Adjusted EBITDA is projected to be between $1.17 billion and $1.20 billion [40]

Financial Data and Key Metrics Changes - In Q4 2024, total Hasbro revenue was $1.1 billion, down 3% excluding the eOne divestiture, and down 15% including eOne [41] - For the full year, total Hasbro revenue was $4.1 billion, down 7% excluding eOne, and down 17% including eOne [44] - Adjusted operating profit for Q4 was $113 million, with an adjusted operating margin of 10.2%, a 14-point improvement year-on-year [43] - Full year adjusted net earnings were $563 million, leading to a $4.01 earnings per diluted share [47] Business Line Data and Key Metrics Changes - Wizards of the Coast revenue grew 4% for the full year, with a record profit margin of 41.8%, a six-point improvement over last year [44][45] - Consumer Products revenue declined 12% for the full year, but brands like Beyblade, Furby, and My Little Pony saw growth [45] - The Entertainment segment revenue declined by 88% due to the sale of eOne, but excluding this impact, revenue declined 4% [46] Market Data and Key Metrics Changes - The toy industry is expected to be flat over the next three years, with growth peaks driven by strength in broader entertainment [50] - Hasbro's licensing business has grown by 60% over the last three years, making it the third largest entertainment licensor globally [22] Company Strategy and Development Direction - Hasbro's new strategic plan, "Playing to Win," focuses on play and partnerships, aiming for a return to growth and profitability [19][31] - The strategy includes five key building blocks: aging up play experiences, leadership in digital play, expansion in fashion and collectibles, partnerships, and profitable franchises [26][30] - The company plans to increase its cost-saving target from $750 million to $1 billion by 2027 [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core business's momentum, particularly in Wizards and digital games, while acknowledging challenges in certain segments like NERF and Star Wars [41][45] - The company anticipates modest revenue growth in 2025, with continued margin expansion and a mid-single-digit revenue CAGR projected through 2027 [31][62] Other Important Information - Hasbro reduced debt by $83 million in Q4, bringing the gross leverage ratio to 3.2 times adjusted EBITDA [48] - The company plans to diversify its manufacturing footprint to reduce reliance on China, aiming to decrease the percentage of US toy volume from China to under 40% over the next two years [61] Q&A Session Summary Question: Consumer Products top line guidance and market share performance - Management expects the toy industry to be flattish in 2025, with trading cards and building blocks driving growth [70] - Closeout volume was down, impacting top line and share results, but management anticipates share gains in many categories despite challenges with Star Wars and NERF [75] Question: Clarification on medium-term guidance and self-publishing video games - Margin expansion is cumulative, with a goal of growing 50 to 100 basis points each year [79] - Video game launches will contribute to revenue and profit, but will also impact margins due to capitalized expenses [80] Question: MAGIC business and upcoming launches - Final Fantasy is expected to be a best-selling MAGIC set, with strong pre-order demand [91] - Spider-Man is anticipated to perform well, although it will be a smaller release compared to Final Fantasy [93] Question: Medium-term guidance and growth drivers - Growth is expected from MAGIC, a stronger entertainment slate, and the video game launch of Exodus [100] Question: Tariffs and guidance assumptions - The guidance primarily considers the impact of tariffs from China, with minimal sourcing from Canada and Mexico [114] Question: Profitability and debt paydown implications - EBITDA projections align with the company's targets, but tax rates and interest expenses may impact earnings per share in 2025 and 2026 [128]