Hasbro, Inc. (NASDAQ:HAS) stock fell Wednesday after the toy and gaming company reported mixed first-quarter results and maintained its full-year outlook.

Quarterly Results Top Earnings Estimates

The company reported first-quarter adjusted earnings of $1.47 per share, beating the analyst consensus estimate of $1.25. Revenue rose 13% year over year to $1.00 billion but missed Wall Street expectations of $1.06 billion.

Growth was driven by a 26% increase in Wizards and Digital Gaming revenue, while Consumer Products revenue was flat. Entertainment revenue declined 24%, partially offsetting those gains.

Profit Margins Expand As Operating Performance Improves

Adjusted operating profit increased to $287.0 million from $222.4 million a year earlier. Adjusted operating margin expanded to 28.7% from 25.1%.

Hasbro ended the quarter with $857.1 million in cash and cash equivalents. Inventories totaled $280.5 million.

Shareholder Returns And Debt Reduction Efforts Continue

The company returned $106 million to shareholders through dividends and share repurchases during the quarter.

Hasbro also allocated $96 million toward debt reduction, including the issuance of $400 million in new notes. The proceeds are expected to be used to repay debt maturing in November 2026 and repurchase higher-interest, longer-term debt securities.

The company declared a quarterly cash dividend of 70 cents per share, payable June 11.

Magic: The Gathering And Franchise Collaborations Drive Momentum

Chief Executive Officer Chris Cocks said the company entered 2026 with momentum, supported by strength in Wizards of the Coast, improving consumer product demand and continued execution of its Playing to Win strategy.

Cocks said the strong performance of Magic: The Gathering continued into 2026, with Lorwyn Eclipsed becoming the best-selling premier set in the franchise's history. He added that Universes Beyond collaborations tied to Teenage Mutant Ninja Turtles, Marvel, The Hobbit and Star Trek are helping expand the game's audience.

“Q1 showed that Magic’s record 2025 was no fluke,” Cocks said.

He also said MagicCon Las Vegas became the largest Magic event in the brand's history, reflecting strong demand across live events, tabletop gaming and digital platforms.

Consumer Products Pipeline Supports Growth Outlook

Cocks said Hasbro's consumer products business continues to benefit from stronger point-of-sale trends, lean retailer inventories and market share gains across its core categories.

He highlighted upcoming opportunities tied to Star Wars, Toy Story 5, Marvel Studios' Doomsday, Play-Doh innovation, FIFA Monopoly and KPop Demon Hunters products.

Full-Year Guidance Reaffirmed

During the conference call, a Hasbro executive stated that the company anticipates a rough annual impact of $30 million due to rising oil prices, assuming they remain around $100 per barrel. Additionally, the executive noted that Hasbro has a tariff refund claim totaling approximately $50 million.

Hasbro reaffirmed its fiscal 2026 revenue outlook of $4.84 billion to $4.94 billion, compared with analyst estimates of $4.95 billion.

The company also reiterated its adjusted operating margin forecast of 24% to 25% and adjusted EBITDA outlook of $1.40 billion to $1.45 billion. Hasbro said it plans to continue investing in its core business, returning capital to shareholders and reducing debt.

Hasbro also said a cybersecurity incident identified in late March is expected to delay approximately $40 million to $60 million in consumer products revenue from the second quarter into the back half of 2026. The company expects to incur roughly $20 million in remediation-related operating expenses.

Hasbro Stock Reaction

HAS Price Action: Hasbro shares were down 8.22% at $89.19 at the time of publication on Wednesday, according to Benzinga Pro data.

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