Robust demand for popular card game sends results higher in the latest quarter
By Connor Hart
Hasbro once again lifted its full-year outlook, as continued demand for its Magic: The Gathering trading-card game drove higher quarterly profit and revenue.
Magic is a cash cow, notching growth that continues to surprise Wall Street. The franchise's quarterly sales topped $600 million during the latest period, up 34% from last year and beating the record it set last quarter, Chief Executive Chris Cocks said.
It is showing no signs of slowing down.
"In 2027, we expect Magic to grow on top of a record 2026," Cocks said on a call with analysts. "Each of our six tentpole releases next year has a full product suite, we're scaling production capacity to meet demand, and our fan base and retail distribution keep expanding."
The brand's strength helped drive Hasbro's third-quarter net revenues 15% higher, to $1.6 billion, ahead of the $1.48 billion that analysts polled by FactSet expected. Outside of Magic, Hasbro additionally logged higher sales across both its consumer-products and entertainment units.
Higher sales gave the maker of Nerf guns and Transformers action figures confidence to raise its revenue outlook for the year, with executives now expecting a 7% to 9% increase for the year in constant currency, up from a prior outlook of up 5% to 7%.
"We're entering the holidays with momentum," Cocks said.
Shares climbed 6.3%, to $104.67, on Tuesday, extending their 26% rally year to date.
Still, Hasbro continues to operate in a dynamic environment. Higher oil costs have increased shipping costs, though tariff refunds and a stabilizing trade landscape have helped offset the pressure, said Gina Goetter, the company's finance chief and chief operating officer.
"We remain focused on exiting the year with a dependable supply base and clean inventory on both sides of the shelf," she said.
For its three months ended Sept. 27, Hasbro posted a profit of $394.5 million, or $2.77 a share, compared with $233.2 million, or $1.64 a share, in last year's comparable quarter. Stripping out one-time items, adjusted earnings came in at $2.90 a share, ahead of the $1.86 a share that analysts polled by FactSet expected.
Looking ahead, the company also raised its adjusted Ebitda -- or earnings before interest, taxes, depreciation and amortization -- outlook for the year, now projecting between $1.58 billion and $1.63 billion, up from a previous forecast of $1.45 billion to $1.5 billion.
Hasbro additionally doubled its share-repurchase target for the year to $400 million.