Hasbro Inc (NASDAQ:HAS) Tops Q3 2025 Estimates on Wizards of the Coast Growth

Hasbro Inc (NASDAQ:HAS) reported financial results for the third quarter of 2025 that surpassed analyst expectations on both the top and bottom lines. The company's performance was largely driven by the continued explosive growth of its Wizards of the Coast segment, though shares traded lower in pre-market activity following the announcement.

Earnings and Revenue Performance

The toy and entertainment company delivered solid financial results for the quarter, exceeding consensus estimates across key metrics. Hasbro reported revenue of $1.39 billion, representing an 8% increase compared to the same period last year and coming in ahead of the $1.36 billion analysts had projected. The company's adjusted earnings per share of $1.68 also beat the Street's expectation of $1.65 per share.

The quarterly performance highlights include:

• Revenue of $1.39 billion versus estimates of $1.36 billion
• Adjusted EPS of $1.68 compared to estimated $1.65
• Operating profit increased 13% year-over-year to $341 million
• Adjusted operating profit rose 8% to $356 million

Market Reaction and Price Action

Despite the earnings beat, Hasbro shares experienced downward pressure in pre-market trading, declining approximately 2.2%. This market reaction suggests investors may be focusing on challenges within certain segments or considering the stock's recent performance context, as shares have shown minimal movement over the past month. The disconnect between positive earnings results and negative price action often indicates that market participants had priced in even stronger results or are concerned about forward-looking guidance.

Segment Performance Breakdown

Hasbro's third-quarter results revealed a tale of two businesses, with the Wizards of the Coast segment delivering exceptional performance while the Consumer Products division faced headwinds.

The Wizards of the Coast and Digital Gaming segment emerged as the clear standout, with revenue surging 42% year-over-year. This remarkable growth was primarily fueled by Magic: The Gathering, which saw revenue increase 55% following the successful releases of "Edge of Eternities" and "Marvel's Spider-Man." The segment generated an operating profit of $252 million, representing a 39% increase, with an impressive 44% operating margin.

In contrast, the Consumer Products segment experienced a 7% revenue decline, which management attributed to anticipated softness related to U.S. retailer order timing tied to later holiday shelf resets. Despite this revenue decrease, the segment did show strength in certain brands including Peppa Pig, GI Joe, Marvel, and Beyblade. The segment's operating profit declined 32% to $89 million on an adjusted basis, affected by tariff expenses and unfavorable product mix.

The Entertainment segment posted an 8% revenue increase, though operating profit declined 14% due to deal timing within the portfolio.

Updated Outlook and Capital Allocation

Looking ahead, Hasbro provided updated full-year guidance that anticipates continued growth. The company now expects:

• Total revenue growth in the high-single digits on a constant currency basis
• Adjusted operating margin between 22% and 23%
• Adjusted EBITDA ranging from $1.24 billion to $1.26 billion

The company maintained its commitment to returning capital to shareholders, paying $98 million in dividends during the quarter and declaring a quarterly cash dividend of $0.70 per common share payable in December. Hasbro also continued to strengthen its balance sheet, allocating $120 million toward debt reduction through bond repurchases and prefunding maturities.

For investors seeking more detailed earnings analysis and future estimates, additional information is available through Hasbro's earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author holds no position in HAS stock. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.