- Increased EBITDA Forecast: Hasbro revised its forecast for adjusted EBITDA to a range of $1.17 billion to $1.20 billion, up from the previous $1.1 billion to $1.15 billion. Analysts had estimated $1.13 billion.
- Beating Second Quarter Estimates: Hasbro reported adjusted earnings per share (EPS) of $1.30, significantly surpassing the estimated 77 cents.
- Net Revenue: Total net revenue for the second quarter was $980.8 million, slightly down by 1.5% year-over-year, but surpassed the estimate of $880.5 million.
- Consumer Products Decline: The Consumer Products segment saw net revenue of $442.4 million, a 16% year-over-year decline but still above the estimated $413.5 million.
- Strong Performance in Wizards of the Coast: Net revenue for Wizards of the Coast and Digital Gaming increased by 16% year-over-year to $522.4 million, clearly beating the estimate of $446.7 million.
- Entertainment Segment’s Drop: The Entertainment segment reported net revenue of $16.0 million, down by 15% year-over-year, and below the estimated $19.1 million.
- Magic: The Gathering’s Impact: Magic: The Gathering contributed significantly to Franchise Brands, reporting net revenue of $412.0 million.
- Adjusted EBITDA Performance: Adjusted EBITDA stood at $302.0 million, down 3.7% year-over-year but exceeded the estimated $227.8 million.
- Operating Margin Achievements: Adjusted operating margin was reported at 25.2%, outperforming the estimate of 19.1%.
- Goodwill Impairment Charge: A non-cash goodwill impairment charge of $1,021.9 million was recorded in the Consumer Products segment due to a quantitative assessment triggered by tariffs.
- Strategic Comments: Gina Goetter, Chief Financial Officer and Chief Operating Officer, noted that strong business diversification and cost productivity initiatives support the updated outlook, despite a challenging macro environment.
- Market Analyst Recommendations: Analysts are positive with 12 buy ratings, 2 holds, and no sell ratings.
Hasbro Inc on Smartkarma
Analyst coverage of Hasbro Inc on Smartkarma has been positive, with insights from Baptista Research highlighting key factors driving growth for the company. In their report titled “Hasbro Inc.: Supply Chain Optimization & Diversification & 4 Pivotal Factors Driving Growth!”, it is noted that Hasbro performed well in the first quarter of 2025, with a 17% increase in revenue reaching $887 million. Strong sales from segments such as Wizards of the Coast and Digital Gaming, along with strategic initiatives like the “Play to Win” strategy, contributed to a 50% rise in adjusted operating profit and a 70% increase in adjusted earnings per share to $1.04.
Furthermore, Baptista Research‘s report “Hasbro Inc.: Expansion in Self-Published Video Games to Drive Sustainable Long-Term Profitability!” discusses how Hasbro’s expansion in self-published video games aims to drive sustainable long-term profitability. The report highlights the company’s diversified revenue streams, particularly in the Wizards of the Coast and Digital Games segment, as crucial to Hasbro’s operational dynamics. While the company achieved significant financial milestones, challenges in certain segments led to mixed outcomes overall, indicating a balanced perspective on Hasbro’s performance and growth potential.
A look at Hasbro Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Hasbro Inc, a renowned company in the toy and gaming industry, has received a mix of Smartkarma Smart Scores indicating its long-term outlook. With a strong dividend score of 4 and high momentum score of 5, Hasbro Inc shows promise in terms of providing returns to investors and maintaining positive market performance. The company’s resilience and growth scores of 3 each suggest a stable outlook for facing economic challenges and continuing to expand its operations.
Although Hasbro Inc‘s value score is rated at 2, indicating some room for improvement in terms of its valuation compared to its peers, the overall combination of scores suggests a favorable long-term outlook for the company. With a diverse range of products including toys, games, and interactive software, Hasbro Inc‘s solid performance on key factors bodes well for its future growth and profitability in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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