Hasbro Shares Surge 6% as Q3 Earnings Exceed Expectations, Guidance Affirmed

PAWTUCKET, R.I. - Shares of Hasbro Inc. (NASDAQ:HAS) rose by 6% in pre-market trading on Thursday after the toy manufacturer reported third-quarter earnings that surpassed expectations and maintained its year-end outlook. The company posted adjusted earnings of $1.73 per share, comfortably exceeding analysts' estimate of $1.31. Revenue came in at $1.28 billion, slightly below the consensus estimate of $1.3 billion, marking a 15% decline year-over-year.

Hasbro's gaming and licensing businesses performed better than expected in the third quarter, highlighting strength in the company's two most profitable sectors. The Wizards of the Coast and Digital Gaming segment saw revenue decrease by 5% to $404 million, while Consumer Products revenue declined 10% to $860.1 million.

CEO Chris Cocks stated, "Our key initiatives in digital, licensing, and reinvigorating product innovation are yielding results."

Hasbro reiterated its full-year adjusted EBITDA guidance of between $975 million and $1.025 billion. The company now expects Consumer Products revenue to decrease by 12-14% and Wizards of the Coast revenue to remain flat or decline by up to 1%.

CFO Gina Goetter mentioned that as Hasbro continues its recovery efforts, the company is "set to finish the year with improved profitability, cash flow, and operational discipline."

The company announced it will pay a quarterly cash dividend of $0.70 per share.