May 20 - Hasbro reported first-quarter revenue and profit that exceeded analyst estimates, driven by strong demand for its digital gaming franchises, including "Magic: The Gathering." The company said its results were released after a delay caused by a cybersecurity incident that led it to identify unauthorized access to its network in late March.
The maker of Play-Doh had previously provided preliminary first-quarter sales guidance after discovering the network access, and it also filed unaudited quarterly results in a regulatory filing the prior week. Management pointed to the digital gaming segment as a key source of resilience as consumer spending on non-essential items has softened amid elevated living costs.
Revenue in the companys Wizards of the Coast and Digital Gaming segment increased by about 26% in the quarter, compared with a 46% rise in the same period a year earlier. Executives also highlighted partnerships tied to streaming shows and films as contributors to sales growth - including a collaboration with Netflix to produce toys and card games linked to the "K-Pop Demon Hunters" movie.
Hasbro reported quarterly revenue of $1 billion, topping the analysts' average estimate of $964.38 million compiled by LSEG. On April 23 the company had forecast preliminary sales in a narrower range of $970 million to $985 million.
Adjusted earnings per share for the quarter came in at $1.47, above analysts' expectations of $1.13. Company commentary attributed the outperformance to stronger demand for digital titles and the impact of cost-saving initiatives.
On supply chain and cost issues, Hasbro said it sources roughly half of its U.S. merchandise from countries including China, Vietnam, India and Japan. The company recorded $8.3 million in U.S. import tariff costs during the quarter and said it is evaluating ways to pursue refunds following a Supreme Court ruling that went against those duties.
Hasbro confirmed it was standing by the annual forecast issued in February.
Context and implications
The quarter illustrates Hasbros ability to lean on digital and entertainment-linked products to offset weaker demand for traditional toys during a period of constrained consumer spending. The combination of higher-than-expected revenue and earnings, along with cost controls, contributed to the beat versus analyst models.
At the same time, tariff expenses and a recent cybersecurity incident introduced operational and timing uncertainties that the company is addressing through regulatory filings and follow-up evaluations.