July 21 : Hasbro raised its annual revenue and profit forecasts on Tuesday, betting on resilient demand for its digital gaming business and continued strength in "Magic: The Gathering" despite an uncertain consumer spending environment.Shares of the "Dungeons & Dragons" maker were up about 2 per cent in premarket trading after it also beat second-quarter sales and profit estimates.The company benefited from momentum in its Wizards of the Coast and Digital Gaming unit, driven by the flagship "Magic" franchise. At the same time, stronger spending by higher-income consumers helped Hasbro counter demand pressure from lower-income households due to persistent inflation."With strong indications for our remaining releases and line of sight to continued growth in 2027, the Magic flywheel is firing on all cylinders," CEO Chris Cocks said.
The Play-Doh maker now expects annual revenue to grow in the range of 5 per cent to 7 per cent, compared with its prior forecast of 3 per cent to 5 per cent. It sees annual adjusted core profit between $1.45 billion and $1.50 billion, compared with the previous outlook range of $1.40 billion to $1.45 billion.The company's second-quarter revenue rose 16 per cent to $1.14 billion, topping analysts' estimates of $1.07 billion, according to data compiled by LSEG.Revenue in the Wizards of the Coast and Digital Gaming segment rose 27 per cent in the quarter ended June 28, compared with a growth of 16 per cent in the year-ago period.The company earned a quarterly adjusted profit of $1.28 per share, compared with analysts' estimates of $1.14 per share.Hasbro said it incurred $11 million in incremental expenses in the quarter from a cybersecurity incident that occurred in March, and expects to incur additional costs related to the incident in the future.
