At Extreme Investor Network, we keep a close eye on the latest developments in the business world to provide our readers with valuable insights and analysis. Today, we are excited to share the latest news about toy company Hasbro, which recently reported its second-quarter earnings that exceeded Wall Street’s expectations.
In a surprising turn of events, Hasbro reported earnings per share of $1.22, adjusted, compared to the 78 cents that analysts were expecting. Similarly, the company’s revenue came in at $995 million, surpassing the $944 million estimate. As a result, Hasbro’s stock price surged more than 3% in afternoon trading.
While overall revenue for Hasbro declined by 18% in the quarter, the company saw a remarkable 20% growth in its Wizards of the Coast and digital gaming segment. This growth was attributed to the successful launch of Magic’s card game, Modern Horizons 3, and the continued popularity of licensed and digital games like Monopoly Go! and Baldur’s Gate 3.
CEO Chris Cocks emphasized the company’s commitment to expanding its digital gaming portfolio, with the recent appointment of John Hight as president of Wizards of the Coast and digital gaming. “We’re going all in on becoming a digital play company,” Cocks stated during the earnings call.
Looking ahead, Hasbro anticipates further revenue declines for the full year, with consumer product revenue projected to decrease by 7% to 11% and Wizards of the Coast revenue expected to dip by 1% to 3%. Despite these projections, the company is optimistic about its future outlook and aims to achieve total adjusted EBITDA between $975 million and $1.025 billion for the year.
Additionally, Hasbro revealed its cost-saving initiatives, with plans to cut costs by $750 million by the end of 2025. This strategic move demonstrates the company’s commitment to maximizing efficiency and improving profitability in the long run.
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