Hasbro, Inc. ( HAS ) shares are trading lower in the premarket session on Thursday after the company reported an upbeat third quarter with strong Wizards-led growth, solid profits, and a raised full-year outlook.

The company reported third-quarter adjusted earnings per share of $1.68, beating the analyst consensus estimate of $1.63.

Quarterly sales of $1.387 billion (+8% year over year) beat the Street view of $1.342 billion.

The revenue growth was driven by double-digit growth in Wizards and Digital Gaming, partially offset by expected softness in Consumer Products tied to U.S. retail order timing.

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Quarterly Profits

Operating profit rose 13% year-over-year to $341 million, while adjusted operating profit climbed 8% to $356 million, driven by record MAGIC performance, cost discipline, and operating leverage.

Adjusted operating margin in the quarter under review contracted to 25.6% from 25.7% a year ago.

Adjusted EBITDA in the third quarter was $412.9 million, higher than $406.4 million in the year-ago period.

“We managed tariff volatility with agility, protected margins through cost productivity and pricing discipline, and continued to advance our transformation initiatives. These actions position Hasbro ( HAS ) to close the year from a position of strength, and we remain firmly on track to achieve our mid-term financial commitments,” said Gina Goetter, Hasbro’s chief financial officer and chief operating officer.

Segments

Hasbro’s Wizards of the Coast and Digital Gaming segment grew revenue 42%, powered by MAGIC: THE GATHERING up 55% and licensed digital gaming up 21%.

Consumer Products revenue fell 7%, matching expectations due to U.S. retailer order timing from later holiday shelf resets.

Entertainment segment revenue rose 8% in the quarter, reflecting deal timing across the portfolio.

The company exited the quarter with cash and equivalents worth $620.9 million.

Outlook

Hasbro ( HAS ) raised its full-year outlook, now expecting high-single-digit revenue growth in constant currency, up from mid-single-digit. The company projects an adjusted operating margin between 22% and 23%.

Adjusted EBITDA guidance increased to $1.24–$1.26 billion from $1.17–$1.20 billion.

Price Action: HAS shares are trading lower by 0.61% to $74.70 premarket at last check on Thursday.

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