Hasbro board games are seen on the market at a Target store in Austin, Texas on December 12, 2023.
Brandon Bell |
Toy company Hasbro beat Wall Street expectations for the second quarter on Thursday, thanks partly to growth in its digital gaming segment.
The company’s shares rose greater than 3% in afternoon trading.
This is how Hasbro fared within the Quarter ended June 30 in comparison with Wall Street expectations based on an analyst survey conducted by LSEG:
- Earnings per share: $1.22 adjusted versus 78 cents expected
- Revenue: $995 million in comparison with expected $944 million
Hasbro reported net income of $138.5 million, or 99 cents per share, for the quarter. That’s a big gain from the year-ago quarter, when the corporate reported a net lack of $235 million, or $1.69 per share.
Although Hasbro’s overall revenue declined 18% for the quarter, its Wizards of the Coast and digital gaming segment reported revenue growth of 20%, offsetting a 20% decline in consumer products revenue and a 90% decline in the corporate’s entertainment segment resulting from the divestiture of production studio eOne.
Hasbro attributed the rise in sales at Wizards of the Coast and in digital gaming to the launch of the Magic card game Modern Horizons 3 and the continued influence of licensed and digital games, with Monopoly Go! leading the way in which together with Baldur’s Gate 3.
CEO Chris Cocks said throughout the company’s conference call that the corporate continues to take a position in its digital gaming portfolio, highlighting the recent appointment of John Hight as president of Wizards of the Coast and Digital Gaming.
“With the changes to the board and the talent we have brought on board, most recently John, we are committed to becoming a digital games company,” said Cocks.
Hasbro expects further declines in sales for the total 12 months. Consumer products sales are expected to say no by 7 to 11 percent, and Wizards of the Coast’s revenue is anticipated to say no by 1 to three percent.
The company expects full-year adjusted EBITDA to be between $975 million and $1.025 billion. Hasbro also expects to scale back costs by $750 million by the top of 2025.
