Hasbro Inc

Toys "R" Us plans to open 120 new standalone stores in the U.S. ahead of the holiday season, lifting its standalone footprint to 160 locations from about 40 today. The expansion is being executed with Go! Retail Group, a specialist in seasonal and experiential retail formats, and builds on the brand's recent run of 24 holiday pop-ups and airport activations. The move marks a major step in rebuilding the toy chain's U.S. presence after its 2017 bankruptcy and the 2018 liquidation of its American stores, a collapse driven less by Amazon than by roughly $5B in debt, much of it from a 2005 leveraged buyout. Toys "R" Us is owned by WHP Global, the New York brand management and licensing firm that acquired it in 2021 and also manages Babies R Us. The added locations could lift overall holiday toy inventory, a positive for Mattel and Hasbro, while drawing attention from Walmart, Target, Amazon, Costco and specialty sellers such as GameStop.

Mattel reported second-quarter revenues of $1.13 billion, up 10.5% year on year and 2.4% above analysts' expectations, yet the toy maker missed analysts' EPS and EBITDA estimates and its stock has fallen 7.1% since reporting to trade at $13.81. The results came as the four consumer discretionary toys and electronics stocks tracked in the roundup collectively beat consensus revenue estimates by 3.8%, with next quarter's revenue guidance 5% above expectations and share prices up 2.4% on average since the latest earnings results. Bark posted the group's best quarter, with revenues of $78.82 million, down 23.4% year on year but 2.4% ahead of expectations, alongside beats on EPS and EBITDA, sending its stock up 4.7% to $9.59. Hasbro reported revenues of $1.14 billion, up 16.2% year on year and 6.6% above estimates, with EPS and EBITDA also beating, and its stock is up 10.3% at $89.99. Funko logged revenues of $207.7 million, up 7.4% year on year and 3.7% above expectations, with EPS and EBITDA beats, and its stock is up 1.8% at $5.38.

Hasbro reported second-quarter fiscal 2026 results that beat estimates and raised its full-year outlook. Adjusted earnings per share came in at $1.28, down 1.5% year over year but above the consensus of $1.17, while net revenues rose 16.2% to $1.14 billion, topping the $1.05 billion estimate. Wizards of the Coast and Digital Gaming revenues increased 27% to $663.8 million, driven by Magic: The Gathering, and Consumer Products revenues grew 5% to $463 million despite disruption from unauthorized network access. Management now expects fiscal 2026 revenues to increase 5-7% in constant currency, up from prior guidance of 3-5% growth, and adjusted EBITDA between $1.45 billion and $1.50 billion. Shares have added about 4.8% since the last earnings report, outperforming the S&P 500.

A growing number of companies are raising their profit outlooks despite macroeconomic uncertainty. More S&P 500 firms are lifting guidance than cutting it, and Wall Street analysts have raised third-quarter earnings estimates for the index for the second consecutive quarter. Argus research analyst Christine Dooley views consistent guidance raises as a catalyst for market-beating returns. Among the companies that have raised guidance in the second quarter so far are Cheesecake Factory, Ford, General Motors, Hasbro, Starbucks, Coca-Cola, Charles Schwab, PayPal, US Bancorp, ASML, Seagate Technology, Supermicro Computer, Bristol Myers Squibb, Johnson & Johnson, UnitedHealth Group, 3M, Lockheed Martin, Northrop Grumman, United Airlines, and United Parcel Service.

PepsiCo and Hasbro are highlighted as two high-yield dividend stocks with yields well above the S&P 500's 1.1%. PepsiCo offers a 4.3% forward yield after a 4% dividend increase earlier this year, extending its growth streak to 54 years, supported by a 75% payout ratio and a 7% revenue rise in the first half of 2026. Hasbro provides a 3.2% yield with a $0.70 quarterly dividend, and while it hasn't raised the payout recently, its decade-long compound annual growth rate of about 4% and strong brand performance, including a 32% jump in Magic: The Gathering revenue, suggest future increases. Both companies demonstrate resilience amid inflation, with PepsiCo achieving its fastest volume growth since 2022 and Hasbro posting its third consecutive quarter of consumer products growth alongside a significant rise in adjusted earnings per share from $2.51 in 2023 to $5.94 on a trailing-12-month basis.

Hasbro beat second-quarter fiscal 2026 expectations and raised its full-year guidance. Adjusted earnings reached $1.28 per share, topping the Zacks Consensus Estimate by 9.4%, while revenues of $1.14 billion exceeded the consensus mark by 8.9%. Management now expects fiscal 2026 constant-currency revenue growth of 5% to 7%, up from a prior view of 3% to 5%, and projects adjusted EBITDA between $1.45 billion and $1.50 billion. The Wizards of the Coast and Digital Gaming segment drove strength with revenues up 27% to $664 million, while Consumer Products posted a 5% revenue gain to $463 million but recorded an adjusted operating loss of $8 million. The stock carries a Zacks Rank of 3, or Hold, and trades at 14.19 times forward earnings, above its sub-industry average of 10.09 times but below the broader Consumer Discretionary sector.

US stocks closed higher on Tuesday, with the Dow rebounding 385.38 points to 52,224.64. The S&P 500 gained 0.89% and the Nasdaq jumped 1.29%, led by a strong recovery in semiconductor stocks. The Philadelphia SE Semiconductor Index, or SOX, surged 5.2% for a second straight day, after falling more than 20% from its record high in late June. Despite the recent heavy sell-off, the chip index is still up nearly 75% since the start of the year. Investors are watching earnings from major technology companies this week, especially Alphabet, Intel, and Texas Instruments, to gauge the outlook for the AI business. 3M shares jumped 7.3% after raising its full-year profit forecast, while Hasbro surged 8.8% on demand for digital games and Magic: The Gathering. Danaher fell 11% after cutting its revenue outlook, and MSCI dropped 10% after increasing its operating expense forecast.

Hasbro raised its full-year guidance, now forecasting consolidated revenue growth of 5% to 7% on a constant currency basis and adjusted EBITDA in the range of $1.45 billion to $1.5 billion. The company reported second-quarter net revenue of $1.14 billion, up 16% year-over-year, driven by a 27% increase in Wizards segment revenue to $664 million. Adjusted earnings per diluted share were $1.28, down 2% due to a $56 million non-cash write-down from canceling several games scheduled for release in 2028 and beyond. Hasbro also increased its share repurchase target for the year from $100 million to a minimum of $200 million. Management noted that MAGIC: The Gathering revenue grew over 32% in the quarter, and the company raised its full-year outlook for the Wizards segment to low double-digit revenue growth.

U.S. stock indexes climbed on Tuesday as a rebound in chipmakers and AI-infrastructure stocks gathered pace. The S&P 500 rose 0.38%, the Dow Jones Industrial Average added 0.17%, and the Nasdaq 100 jumped 1.26%. Chipmakers rallied after a recent selloff cheapened valuations, drawing dip buyers ahead of megacap technology earnings this week, starting with Alphabet on Wednesday. Software stocks were weak after Morgan Stanley downgraded several companies in the sector, including Adobe, Intuit, and Workday. Hasbro surged more than 10% after reporting better-than-expected quarterly revenue and raising its full-year adjusted Ebitda forecast, while 3M gained over 8% on stronger earnings and an improved outlook. Danaher fell more than 13% after issuing a weaker revenue growth forecast, and MSCI dropped over 10% on an earnings miss and higher expense guidance.

Hasbro shares surged 10.1% after the company raised its full-year revenue, adjusted operating income, and profit guidance following a strong second quarter driven by its Wizards of the Coast and Digital Gaming segment. Revenue from Magic: The Gathering soared 32% year over year, surpassing $500 million in a single quarter for the first time in the game's 30-year history, fueled by expansion releases including Marvel Super Heroes and Secrets of Strixhaven. By comparison, Monopoly Go! contributed just $44 million in the quarter. The stock also offers a dividend yield above 3% and management allocates excess cash to share repurchases.

Several major companies reported quarterly earnings beats on Tuesday morning. General Motors posted a 14% earnings surprise with $3.57 per share on revenues of $48.03 billion, and raised its full-year guidance. 3M delivered its biggest beat since the June quarter a year ago, with earnings of $2.40 per share topping estimates by 5.73%, and also raised its full-year outlook. Novartis reported a 9.55% beat with $2.41 per share, its first earnings beat since the December 2025 quarter. Northrop Grumman posted a 12.28% beat with $7.68 per share, its fifth straight beat, though shares fell 4.2% despite a record backlog of $105 billion. Hasbro beat estimates by 9.4% with $1.28 per share on revenues of $1.14 billion, up from $980.8 million a year ago. D.R. Horton reported a 7% beat with $3.20 per share on revenues of $9.23 billion, matching the year-ago tally.

Hasbro's Wizards of the Coast segment generated revenues of $582 million in the first quarter of 2026, up 26% year over year, while operating profit climbed 29% to $298 million. The segment's operating margin exceeded 51%, driven by the continued success of Magic: The Gathering, with the Lorwyn Eclipsed release becoming the best-selling premier set in the franchise's history. Management noted that the Universes Beyond collaborations with franchises such as Teenage Mutant Ninja Turtles, Marvel, Final Fantasy, and Avatar: The Last Airbender have become one of the most successful player-acquisition tools in Magic's history. Hasbro reiterated that Wizards, digital gaming, and licensing remain its top investment priorities, with expanding digital platforms like Magic Arena and upcoming AAA game launches creating additional revenue opportunities. The company's stock has gained 23.5% in the past year and currently carries a Zacks Rank of 1, or Strong Buy.

Hasbro has gained about 1.8% so far this year, outperforming the Consumer Discretionary sector's average return of negative 9.8%. The company holds a Zacks Rank of 1, or Strong Buy, and its full-year earnings consensus estimate has risen 6.1% over the past quarter. Within the Toys - Games - Hobbies industry, which has lost roughly 7.5% year-to-date, Hasbro is also performing better. Another Consumer Discretionary stock, Escalade, has returned 34.4% year-to-date and carries a Zacks Rank of 2, or Buy, with its current-year EPS estimate up 2.9% in the past three months.

BRANDmania, Europe's largest B2B networking festival for licensing and partnerships, will take place on 24 and 25 June at the Zeche Zollverein site in Essen, Germany. The event, organized by the Spielwarenmesse Group, features an expanded programme including a new BRANDmania Ink Lab where attendees can get a free tattoo of a licensed design, a Glow Up Area, and a Collab Culture Lounge. Major licensors such as Hasbro, Mattel, Paramount Global, Universal Products & Experiences, and Warner Bros. Discovery will host exclusive screenings previewing upcoming themes and franchises. The Stage programme, presented by Licensing International Germany, will open with insights from the Global Licensing Industry Study 2026 and include a blindmate® session with Duolingo seeking a brand match.