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Hasbro signage is displayed during the New York Toy Fair in New York City, U.S., February 17, 2026. REUTERS/Jeenah Moon Purchase Licensing Rights, opens new tab

July 21 (Reuters) - Hasbro (HAS.O), opens new tab raised its annual revenue and profit forecasts on Tuesday, betting on resilient ​demand for its digital gaming business and continued strength in "Magic: ‌The Gathering" despite an uncertain consumer spending environment.

The company also beat second-quarter sales and profit estimates, as its flagship "Magic" franchise fueled a 27% rise in revenue at its Wizards ​of the Coast and Digital Gaming unit. In the ​year-ago period, the unit recorded 16% growth.

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Stronger spending by higher-income ⁠consumers helped Hasbro offset demand pressure from lower-income households facing ​persistent inflation.

"With strong indications for our remaining releases and line of sight ​to continued growth in 2027, the Magic flywheel is firing on all cylinders," CEO Chris Cocks said.

Hasbro launched the "Secrets of Strixhaven" series in April and plans to ​release its "Marvel Super Heroes" title later this year.

Some analysts, however, had questioned ​whether the franchise can sustain recent growth as second-half comparisons become tougher.

Shares of ‌the ⁠company, which also makes "Dungeons & Dragons" games, were marginally higher in premarket trading.

The Play-Doh maker now expects annual revenue to grow in the range of 5% to 7%, compared with its prior forecast of 3% ​to 5%. It ​sees annual adjusted ⁠core profit between $1.45 billion and $1.50 billion, compared with the previous outlook range of $1.40 billion to $1.45 billion.

Second-quarter ​revenue rose 16% to $1.14 billion, topping analysts' estimates of $1.07 ​billion, according ⁠to data compiled by LSEG.

The company's quarterly adjusted profit fell 1.5% to $1.28 per share. Analysts had estimated a profit of $1.14 per share.

Hasbro said ⁠it ​incurred $11 million in incremental expenses in the ​quarter from a cybersecurity incident that occurred in March, and expects additional related costs in ​the future.

Reporting by Neil J Kanatt in Bengaluru; Editing by Leroy Leo

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Key Takeaways Hasbro's second-quarter results are expected to benefit from strength in the Wizards of the Coast business.HAS is likely to see demand supported by gaming, collectibles and entertainment-driven product launches.HAS margins may remain under pressure from royalties, digital investments and higher input costs. Hasbro, Inc. (HAS - Free Report) is scheduled to report second-quarter 2026 results on July 21, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 31.3%.

HAS’ earnings have topped the consensus mark in each of the trailing four quarters, the average surprise being 37.9%.

How Are Estimates Placed?The Zacks Consensus Estimate for earnings is pegged at $1.15 per share, indicating a 11.5% decrease from $1.30 reported a year ago.

For revenues, the consensus estimate is pinned at $1.05 billion, implying a 6.7% increase from the prior-year quarter’s reported figure.

Factors to Note Ahead of HAS’ Q2 ResultsRevenuesHasbro’s top line in second-quarter 2026 is likely to have been driven by continued strength in its Wizards of the Coast segment. The MAGIC franchise remains a key growth engine, supported by record demand across premier releases, expanding organized play and a growing player base. Strong backlist demand, broader distribution through the Wizards Play Network and momentum from the Secrets of Strixhaven release are likely to have supported sales volumes. The expanding MAGIC ecosystem across tabletop, digital platforms and live events might have further supported revenue growth.

Our model predicts that total Wizards of the Coast & Digital Gaming revenues are likely to increase 8% year over year to $564 million.

Additionally, the Consumer Products segment is expected to have benefited from healthy point-of-sale trends, lean retailer inventories and a stronger entertainment slate. Product launches tied to major entertainment franchises and continued focus on gaming, collectibles and multi-generational brands are likely to have supported demand. Stable contributions from digital gaming, including recurring revenue streams from mobile titles, are also likely to have supported overall revenues.

Our model predicts that total Consumer Products revenues are likely to increase 2.5% year over year to $453.7 million.

EarningsMargins and earnings in second-quarter 2026 are likely to have remained under pressure despite expected revenue growth. Higher royalty expenses associated with licensed products and entertainment partnerships are expected to have weighed on profitability. Ongoing investments in digital gaming initiatives, product development and marketing for future game launches might have further limited margin expansion. In addition, rising oil-related input costs, including freight, resin and packaging expenses, are likely to have increased operating costs despite the company's continued productivity initiatives and cost-saving efforts.

Our model predicts gross profit margin to contract 530 basis points year over year 71.7%.

What Our Model Says About HAS StockOur proven model predicts an earnings beat for Hasbro this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

HAS’ Earnings ESP: Hasbro has an Earnings ESP of +2.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

HAS’ Zacks Rank: The company has a Zacks Rank #3 at present.

Other Stocks Poised to Beat on EarningsHere are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.

JAKKS Pacific, Inc. (JAKK - Free Report) currently has an Earnings ESP of +51.02% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

JAKK’s earnings for the to-be-reported quarter are expected to increase 733.3%. JAKKS Pacific reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 53%.

Hooker Furnishings Corporation (HOFT - Free Report) has an Earnings ESP of +150.00% and a Zacks Rank of 3 at present.

Hooker Furnishings is expected to register a 93.6% increase in earnings for the to-be-reported quarter. HOFT reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 126.1%.

Royal Caribbean Cruises Ltd. (RCL - Free Report) currently has an Earnings ESP of +0.77% and a Zacks Rank of 3.

RCL’s earnings for the to-be-reported quarter are expected to decrease 10.5%. Royal Caribbean reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 5.1%.

Hasbro (HAS - Free Report) ended the recent trading session at $84.44, demonstrating a -1.04% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.18%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 2.07%.

Coming into today, shares of the toy maker had lost 0.97% in the past month. In that same time, the Consumer Discretionary sector lost 1.1%, while the S&P 500 lost 2.9%.

The investment community will be paying close attention to the earnings performance of Hasbro in its upcoming release. The company's earnings per share (EPS) are projected to be $1.18, reflecting a 9.23% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.05 billion, indicating a 6.82% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.01 per share and a revenue of $4.98 billion, indicating changes of +8.48% and +5.94%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Hasbro. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.84% higher. Hasbro currently has a Zacks Rank of #2 (Buy).

With respect to valuation, Hasbro is currently being traded at a Forward P/E ratio of 14.21. Its industry sports an average Forward P/E of 10.64, so one might conclude that Hasbro is trading at a premium comparatively.

It is also worth noting that HAS currently has a PEG ratio of 2.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Toys - Games - Hobbies industry currently had an average PEG ratio of 1.67 as of yesterday's close.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 46% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.