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Hasbro Inc. (HAS) stock rose in Tuesday's premarket trading after the toy and gaming company reported third-quarter results that beat Wall Street expectations and raised its full-year outlook.
Adjusted earnings came in at $2.90 per share, beating the analyst consensus estimate of $1.86. Revenue rose 15% year over year to $1.595 billion, topping estimates of $1.476 billion.
Hasbro's Wizards and Digital Gaming segment led growth, with revenue jumping 31%. Consumer Products revenue increased 4%, while Entertainment revenue rose 9%.
Adjusted operating profit climbed to $541.2 million from $355.6 million a year earlier. Adjusted operating margin expanded to 33.9% from 25.6%.
Hasbro ended the quarter with $850.7 million in cash and cash equivalents and $576.2 million in inventory. The company returned $206 million to shareholders through dividends and share repurchases, and paid down $79 million in debt. It also declared a quarterly dividend of 70 cents per share, payable Dec. 2.
Hasbro doubled its 2026 share repurchase target to at least $200 million from at least $100 million.
CEO Chris Cocks said the company delivered its fourth consecutive quarter of double-digit revenue growth. Meanwhile, Magic: The Gathering surpassed $600 million in quarterly revenue for the first time.
Cocks said Hasbro's asset-light licensing strategy and expanding Magic lineup position the company for a strong finish to 2026 and continued growth in 2027.
Hasbro raised its fiscal 2026 revenue forecast to $5.030 billion-$5.124 billion from $4.936 billion-$5.030 billion. The revised outlook compares with the $5.058 billion analyst estimate.
The company also increased its adjusted operating margin forecast to 27%-28%, up from its previous outlook of 25%-26%. Additionally, Hasbro raised its adjusted EBITDA forecast to $1.575 billion-$1.625 billion from $1.45 billion-$1.50 billion.
Management reiterated its commitment to investing in core operations, returning capital to shareholders and reducing debt.
According to Reuters, Hasbro raised its annual revenue outlook as strong demand for digital games, including Magic: The Gathering, supported growth ahead of the crucial holiday shopping season. The company has recorded seven straight quarters of digital gaming growth, while popular entertainment franchises have helped lift collectible toy sales, the report added.
HAS Price Action: Hasbro shares were up 2.04% at $100.50 during premarket trading on Tuesday, according to market data.
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