Hasbro Raises Annual Forecast as Magic: The Gathering Revenue Soars

Hasbro raised its annual revenue growth forecast to 5%–7%, up from a previous estimate of 3%–5%, following second-quarter results that exceeded market expectations. The company reported second-quarter revenue of $1.14 billion, a 16% year-over-year increase, and net earnings of $160.9 million, reversing a net loss of $855.8 million from the previous year. Adjusted earnings per share reached $1.28, beating analyst estimates of $1.13.

Growth was primarily driven by the Wizards of the Coast and Digital Gaming unit, where revenues increased 27% to $664 million. The Magic: The Gathering franchise anchored this performance, exceeding $500 million in quarterly revenue for the first time. CEO Chris Cocks described the brand as a "mega franchise" and cited a growing player base and upcoming releases, including a Star Trek-themed set in November, as key drivers. To maintain momentum, the company is investing an additional $20 million in marketing for future video game launches.

Despite the strong performance, CFO Gina Goetter characterized the updated forecast as protective against uncertainties in the holiday season, though some analysts described it as conservative. The company also noted $11 million in expenses from a March cybersecurity incident. Following the report and the Board of Directors' declaration of a $0.70 per share quarterly dividend, Hasbro's stock rallied up to 8.8%.