Hasbro (HAS) earnings Q2 2024

Toy company Hasbro beat Wall Street expectations for the second quarter on Thursday, thanks in part to growth in its digital gaming segment.

Shares of the company jumped more than 3% in afternoon trading.

Here’s how Hasbro performed in the quarter ended June 30 compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

• Earnings per share: $1.22 adjusted vs. 78 cents expected
• Revenue: $995 million vs. $944 million expected

Hasbro reported net income of $138.5 million, or 99 cents per share, for the quarter. That marked a significant gain from the same quarter last year, when the company reported a net loss of $235 million, or $1.69 per share.

Though Hasbro’s revenue declined 18% overall for the quarter, its Wizards of the Coast and digital gaming segment saw 20% revenue growth. This partially offset a drop in consumer product revenue of 20%, as well as a decline in the company’s entertainment segment of 90%, driven by the divestiture of production studio eOne.

Hasbro attributed the revenue increase for Wizards of the Coast and digital gaming to the launch of Magic’s card game, Modern Horizons 3, and the continued impact of licensed and digital gaming, with Monopoly Go! leading along with Baldur’s Gate 3.

CEO Chris Cocks said during the company’s earnings call that it continues to invest in its digital gaming portfolio, highlighting the recent appointment of John Hight as president of Wizards of the Coast and digital gaming.

“Between our board move and talent we brought on board, most recently with John … we’re going all in on becoming a digital play company,” Cocks said.

Hasbro anticipates further revenue declines for the full year, with consumer product revenue projected to be down 7% to 11% and Wizards of the Coast revenue anticipated to be down 1% to 3%.

The company estimates a total adjusted EBITDA for the full year of between $975 million and $1.025 billion. Hasbro also expects to cut costs by $750 million by the end of 2025.