Hasbro shares jumped more than 11 percent on Tuesday, hitting a new 52-week high after the toymaker reported quarterly earnings that blew past Wall Street expectations, powered by a record quarter for its Magic: The Gathering franchise.
The company posted adjusted earnings of $2.90 per share, topping the consensus estimate of $1.86 by more than a dollar. Revenue rose 15 percent from a year earlier to $1.60 billion, against expectations of $1.48 billion. The stock climbed 11.2 percent to $109.52 on heavy volume.
A $600 million quarter for Magic
The standout was Wizards of the Coast and digital gaming, where revenue surged 31 percent. Magic: The Gathering alone generated more than $600 million in quarterly revenue for the first time, a milestone that underlines how a thirty-year-old card game has become one of the most reliable growth engines in entertainment.
The numbers beneath the headline were equally strong. Adjusted EBITDA reached $604.5 million, a 37 percent beat, with margins of 37.9 percent. Operating margin climbed to 32.4 percent from 24.6 percent a year earlier, evidence that cost discipline is compounding the benefit of the revenue beat. The company also declared a quarterly dividend of 70 cents per share.
Old toys, new economics
Hasbro’s quarter lands in an earnings season that is rewarding companies with tangible results. Industrial and consumer names have led the way even as investors question the financing behind expensive AI infrastructure projects, a split that whipped about $80 billion off AI-linked market value earlier this month on hot inflation data.
The contrast with the market’s anxieties is striking. While Wall Street debates the debt behind the AI buildout, a cardboard card game keeps compounding. Goldman Sachs chief David Solomon argued this week that new technology expands trading rather than threatening it; Hasbro is living proof that old intellectual property, well managed, can still expand earnings. Zacks’ company news roundup listed Hasbro among Tuesday’s standout gainers alongside 3M, Equifax and KeyCorp, a session that belonged to the old economy.
