Hasbro announced Tuesday that it is raising its full-year revenue and profit projections, pointing to steady demand for its digital gaming offerings and continued momentum behind the “Magic: The Gathering” brand, even as consumers face ongoing economic pressures.
Stock in the maker of “Dungeons & Dragons” climbed roughly 2% in premarket trading following the announcement, which came alongside second-quarter results that surpassed analyst expectations on both revenue and profit.
The company credited its Wizards of the Coast and Digital Gaming division with much of the success, largely fueled by the flagship “Magic” franchise. Hasbro also noted that stronger spending from higher-income consumers helped offset softer demand from lower-income households, which have been squeezed by ongoing inflation.
CEO Chris Cocks expressed confidence in the company’s direction, saying, “With strong indications for our remaining releases and line of sight to continued growth in 2027, the Magic flywheel is firing on all cylinders.”
The Play-Doh manufacturer now anticipates annual revenue growth of between 5% and 7%, up from its earlier projection of 3% to 5%. The company also raised its adjusted annual core profit forecast to a range of $1.45 billion to $1.50 billion, compared with the previous estimate of $1.40 billion to $1.45 billion.
Second-quarter revenue climbed 16% to $1.14 billion, topping the $1.07 billion analysts had expected, according to data from LSEG. The Wizards of the Coast and Digital Gaming segment posted a 27% revenue increase for the quarter ending June 28, accelerating from the 16% growth recorded in the same period a year earlier.
Hasbro reported an adjusted quarterly profit of $1.28 per share, beating analyst estimates of $1.14 per share.
The company also disclosed that a cybersecurity incident that took place in March resulted in $11 million in added expenses during the quarter, and warned that further costs tied to that incident are expected going forward.
