Hasbro Stock: Toymaker’s Earnings Win Driven By Magic: The Gathering

Toymaker Hasbro (HAS) reported a solid earnings beat before the opening bell Tuesday, mainly driven by its Magic: The Gathering tabletop game. Hasbro stock rose slightly.



Hasbro’s adjusted earnings grew to $1.15 per share from a loss of 17 cents per share a year earlier. Revenue grew 1% over the year to $1.34 billion. Wall Street was expecting adjusted EPS of 85 cents on $1.74 billion of revenue. HAS stock inched up 0.71% during trading on Tuesday.

“Wizards of the Coast turned in its biggest quarter ever, led by 15% growth in tabletop Gaming and 11% growth in ‘Magic: The Gathering’ across platforms,” ​​CEO Chris Cocks said in the announcement. “Our teams are driving focus and scale in gaming, multigenerational brands and direct to consumer. Backed by Hasbro’s unmatched portfolio of brands and brand-building capabilities, we have confidence in the strength of our initiatives for the second half and we are positioned to deliver profitable growth and long-term shareholder returns.”

Hasbro Stock

HAS stock rose 0.7% to 79.98, after reversing higher from a 21-month intraday low.

Hasbro is one of the biggest names in games with more than 1,500 brands. It makes everything from classic board games like Monopoly to action figures for movies and TV shows, including Marvel, Transformers and My Little Pony. Its consumer products segment, including toys like NERF Guns and Power Rangers toys, makes up more than half of Hasbro’s revenue. That segment grew 7% over the year to $734.2 million.

But its most profitable segment is Wizards of The Coast, which makes the Magic: The Gathering card game and Dungeons & Dragons. WOTC revenue was only up 3% over the year to $419.8 million. But its operating profit jumped 17% to $225.6 million. Meanwhile, consumer products posted a loss of $6.5 million. Hasbro’s overall profit grew 14% to $219.1 million.

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For the remainder of 2022, Hasbro is projecting low-single digit revenue growth. It predicts operating profit will grow in the mid-single digits, to an operating profit margin of 16%. The company expects operating cash flow to be in the range of $700 million to $800 million for the year.

Toymaker peer Mattel (MAT) reports results on Thursday.

You can follow Harrison Miller for more news and stock updates on Twitter @IBD_Harrison.


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