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Hasbro, Inc. HAS reported second-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line declined year over year while the bottom line increased from the prior-year's quarter figure. The downside was mainly due to weaker contributions from the Consumer Products and Entertainment segments.
Following the results, the stock rose 3.2% in today’s pre-market trading session.
Nonetheless, the company raised its full-year revenue and adjusted EBITDA guidance. The update was supported by strong performance in the Wizards segment, along with steady contributions from the games portfolio, licensing partnerships and digital initiatives. Despite ongoing macroeconomic challenges, the company expects cost efficiency measures and business diversification to support its growth plans for 2025 and beyond.
In second-quarter fiscal 2025, HAS reported adjusted earnings per share (EPS) of $1.3, which beat the Zacks Consensus Estimate of 78 cents. In the year-ago quarter, it reported an adjusted EPS of $1.22.
Hasbro, Inc. price-consensus-eps-surprise-chart | Hasbro, Inc. Quote
Net revenues of $980.8 million beat the consensus mark of $877.3 million. However, the top line declined 1% from $995.3 million reported in the prior-year period.
Hasbro has three reportable operating segments, Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment.
In the fiscal second quarter, net revenues from the Consumer Products segment decreased 16% year over year to $442.4 million. Despite the decline, the figure beat expectations. The better-than-expected performance was supported by strong licensing revenues. Adjusted operating margin was 0.3% against negative 0.1% reported in the year-ago quarter.
The Wizards of the Coast and Digital Gaming segment’s revenues totaled $522.4 million, up 16% from $452 million reported in the year-ago quarter. Adjusted operating margin was 46.3% compared with 54.7% reported in the year-ago quarter.
The Entertainment segment’s revenues plunged 15% year over year to $16 million. Adjusted operating margin was 63.1% compared with 94.1% reported in the year-ago quarter.
In the fiscal second quarter, Hasbro’s cost of sales (as a percentage of net revenues) was 23% compared with 23.9% in the year-earlier quarter.
Selling, distribution and administration expenses were $282.8 million compared with $318.5 million reported in the prior-year quarter.
The company reported adjusted EBITDA of $302 million compared with $313.5 million a year ago. Our estimate for the metric was $231.5 million.
As of June 29, 2025, cash and cash equivalents were $546.9 million compared with $626.8 million as of June 30, 2024. At the end of the reported quarter, inventories totaled $417.1 million compared with $357.6 million a year ago.
As of June 29, 2025, long-term debt was $3.32 billion, down from $3.46 billion as of June 30, 2024.
For 2025, Hasbro now anticipates total revenues to increase in mid-single digits on a constant currency basis. Earlier, the company expected total revenues to increase slightly.
It now expects adjusted operating margin to be between 22% and 23% compared with 21-22% expected earlier.
Adjusted EBITDA is now expected to be in the range of $1.17-$1.2 billion, up from the prior expectation of $1.1-$1.15 billion.
Hasbro currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Carnival Corporation & plc CCL, Monarch Casino & Resort, Inc. MCRI and Planet Fitness, Inc. PLNT.
Carnival presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Carnival delivered a trailing four-quarter earnings surprise of 169.9%, on average. The stock has gained 19.9% in the year-to-date period. The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS implies growth of 5.8% and 40.1%, respectively, from the year-ago levels.
Monarch Casino presently flaunts a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 11.1%, on average. The stock has rallied 35.2% in the year-to-date period.
The Zacks Consensus Estimate for Monarch Casino’s 2025 sales and EPS indicates an increase of 4.5% and 9.9%, respectively, from the year-ago levels.
Planet Fitness currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.9%, on average. The stock has declined 14.9% in the year-to-date period.
The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.4% and 12.4%, respectively, from the year-ago period’s levels.
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This article originally published on Zacks Investment Research (zacks.com).
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