Hasbro Q1 revenue grows 13% to $1 billion on gaming strength

Hasbro (NASDAQ: HAS) reported first-quarter revenue of $1 billion, a 13 percent increase year-over-year that beat Wall Street estimates, driven by strong performance in its Wizards of the Coast division.

The results, which represent an earnings surprise of 31.25 percent, were led by continued momentum in the company's high-value gaming franchises, particularly Magic: The Gathering, according to the company's earnings release.

The toy and gaming maker posted strong top and bottom-line growth, exceeding analyst expectations for the fourth consecutive quarter.

Metric	Actual	Consensus	Beat/Miss
Revenue	$1.0 billion	$989.5 million	+1.08%
Adj. EPS	$1.47	$1.12	+$0.35

Adjusted earnings per share of $1.47 is a significant increase from the $1.04 per share reported in the same period a year ago. The company's revenue of $1 billion also compares favorably to the $887.1 million from the prior-year quarter.

Shares of Hasbro have gained approximately 18.5 percent since the beginning of the year, outperforming the S&P 500's 7.4 percent gain over the same period. The strong report led to a favorable estimate revision trend, translating to a Zacks Rank #2 (Buy) for the stock, indicating expectations of near-term market outperformance.

The sustained growth from the Wizards of the Coast segment underscores the success of Hasbro's strategy to invest in its digital and gaming properties. Investors will be watching the company's next earnings call to see if the gaming division can maintain its growth trajectory and continue to offset any softness in other areas.

This article is for informational purposes only and does not constitute investment advice.