11:46 AM EDT, 07/25/2024 (MT Newswires) -- Hasbro ( HAS ) on Thursday increased its full-year outlook for core profitability as second-quarter results came in ahead of market expectations, aided by margin improvement.

Adjusted earnings per share advanced to $1.22 for the three months ended June 30 from $0.49 last year and surpassed the $0.76 average analyst estimate on Capital IQ. Revenue fell 18% year over year to $995.3 million but topped the $943.4 million market view. Excluding the eOne divestiture that closed at the end of 2023, revenue was down 6%. Operating margin in the quarter came in at 21.3%, compared with a negative 15.6% print last year.

Shares of Hasbro ( HAS ) climbed 3.5% in Thursday trade.

"We delivered a solid performance in games and digital licensing and substantial margin improvement this quarter," Chief Executive Chris Cocks said in a statement.

In Hasbro's ( HAS ) largest segment by revenue, consumer products, sales slid 20% year over year to $524.5 million, while the division's operating margin swung into negative territory.

Wizards of the Coast and Digital Gaming revenue rose 20% to $452 million and its operating margin jumped to 54.7% from 37.9% last year. Outperformance in digital licensing was led by a "material step-up" in contribution from Monopoly Go!, Chief Financial Officer Gina Goetter told analysts on a conference call, according to a Capital IQ transcript.

For the full year, Hasbro ( HAS ) is guiding total company adjusted earnings before interest, taxes, depreciation and amortization in the $975 million to $1.03 billion range, raised from its prior outlook of $925 million to $1 billion.

The company now expects consumer products revenue to decline by 7% to 11%, an improvement from its previous forecast of up to a 12% drop.

Wizards of the Coast revenue is now expected to decline 1% to 3% year over year, improved from the company's prior forecast of a 3% to 5% decline for the division. Hasbro ( HAS ) is guiding for a 42% operating margin in the segment, up from its prior outlook of 38% to 40%.

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