Shares of Hasbro Inc (NASDAQ:HAS) rose 7.7% in premarket trading on Thursday after the toymaker posted a sharp first-quarter revenue beat, powered by strong sales from Magic: The Gathering and digital gaming.
Revenue rose 17% year-over-year to $887.1 million, far surpassing analysts' expectations of $771.15 million, driven by a 46% surge in its Wizards of the Coast and Digital Gaming segment. Operating profit in the segment soared 87%, with margins nearing 50%.
Earnings per share came in at $0.70, edging past the $0.69 consensus estimate.
CEO Chris Cocks credited the performance to Hasbro’s “Playing to Win” strategy. “We’re outperforming in a tough environment and investing in long-term bets with strong early returns,” he said.
Wizards of the Coast, home to Magic: The Gathering and Dungeons & Dragons, delivered a 45% jump in Magic revenue alone. Meanwhile, Monopoly Go! contributed $39 million, underscoring the company's momentum in digital and collectible-based gaming.
Operating margins improved, with adjusted operating profit up more than five percentage points to 25.1%.
While Hasbro’s consumer products and entertainment segments declined 4% and 5% respectively, the company pointed to improved margins and timing-related impacts.
Higher-margin segments like Wizards and licensing are offsetting tariff risks and driving margin expansion, according to CFO Gina Goetter.
The company also reaffirmed its full-year outlook despite tariff headwinds. Executives said tariffs on China and other countries could have a $100 to $300 million gross impact on 2025 profits, though mitigation measures may reduce the net effect to $60 to $180 million.
The firm also expects to hit its $1 billion cost savings target.