Hasbro Q3 Earnings and Revenues Top Estimates, EBITDA View Raised

Hasbro, Inc. HAS reported third-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year, while the bottom line decreased from the prior-year quarter.Hasbro’s third-quarter fiscal 2025 performance was supported by the continued strength of its brand portfolio and execution of the “Playing to Win” strategy. The standout driver was Wizards of the Coast, with Magic: The Gathering delivering record-breaking results and reinforcing its position as a core growth engine. The company also benefited from stronger Consumer Products point-of-sale trends and market share gains heading into the holiday season, signaling healthy demand.HAS’ Q2 Earnings & RevenuesIn third-quarter fiscal 2025, HAS reported adjusted earnings per share (EPS) of $1.68, which beat the Zacks Consensus Estimate of $1.66. In the year-ago quarter, it reported an adjusted EPS of $1.74.Hasbro, Inc. Price, Consensus and EPS Surprise Hasbro, Inc. price-consensus-eps-surprise-chart | Hasbro, Inc. QuoteNet revenues of $1,387.5 million beat the consensus mark of $1,345 million. Moreover, the top line rose 8.3% from $1,281.3 million reported in the prior-year period.HAS’ Segmental RevenuesHasbro has three reportable operating segments, Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment.In the fiscal third quarter, net revenues from the Consumer Products segment decreased 7% year over year to $769.9 million. The decline was consistent with company expectations, largely reflecting the impact of delayed holiday shelf resets at U.S. retailers. Our model predicted the segment’s revenues to be $798.6 million. Adjusted operating margin was 1.1% flat year over year.The Wizards of the Coast and Digital Gaming segment’s revenues totaled $572 million, up 42% from $404 million reported in the year-ago quarter. Our model predicted the segment’s revenues to be $498.5 million. Adjusted operating margin was 44% compared with 44.9% reported in the year-ago quarter.The Entertainment segment’s revenues rose 8% year over year to $18.6 million. Our model predicted the segment’s revenues to be $17 million. Adjusted operating margin was 60.8% compared with 76.7% reported in the year-ago quarter.Operating Highlights of HASIn the fiscal third quarter, Hasbro’s cost of sales (as a percentage of net revenues) was 29.9% compared with 29.6% in the year-earlier quarter.Selling, distribution and administration expenses were $287.3 million compared with $299.3 million reported in the prior-year quarter.The company reported adjusted EBITDA of $412.9 million compared with $406.4 million a year ago. Our estimate for the metric was $373.8 million.Hasbro’s Balance SheetAs of Sept. 28, 2025, cash and cash equivalents were $620.9 million compared with $696.1 million as of Sept. 29, 2024. At the end of the reported quarter, inventories totaled $396.7 million compared with $375.4 million a year ago.As of Sept. 28, 2025, long-term debt was $3.32 billion, down from $3.46 billion as of Sept. 29, 2024.HAS Raises 2025 OutlookFor 2025, Hasbro now anticipates total revenues to increase in high single digits on a constant currency basis. Earlier, the company expected total revenues to increase in mid-single digits. It continues to expect the adjusted operating margin to be between 22% and 23%.Adjusted EBITDA is now expected to be in the range of $1.24-$1.26 billion, up from the prior expectation of $1.17-$1.2 billion.HAS’ Zacks RankHasbro currently has a Zacks Rank #3 (Hold).Stocks to ConsiderSome better-ranked stocks from the Consumer Discretionary sector are Norwegian Cruise Line Holdings Ltd. NCLH, Carnival Corporation & plc CCL and Planet Fitness, Inc. PLNT.Norwegian Cruise Line flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The company delivered a trailing four-quarter earnings surprise of 29.1%, on average. NCLH stock has declined 7.2% year to date. The Zacks Consensus Estimate for NCLH’s 2025 sales and EPS indicates growth of 6% and 14.8%, respectively, from the year-ago period’s levels.Carnival flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 169.8%, on average. Carnival stock has gained 17.3% year to date.The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS indicates growth of 6.5% and 51.4%, respectively, from the prior-year levels.Planet Fitness has a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 6.8%, on average. Planet Fitness stock has gained 22.2% in the past year.The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.2% and 13.1%, respectively, from the prior-year levels.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL): Free Stock Analysis Report Hasbro, Inc. (HAS): Free Stock Analysis Report Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report Planet Fitness, Inc. (PLNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks