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(Sharecast News) - American toy and games manufacturer Hasbro on Thursday raised its sales outlook after a strong third quarter, supported by a solid performance by its Wizards of the Coast subsidiary.
The company now expects revenues to grow at a high-single-digit rate at constant currency in 2025, up from previous guidance for mid-single-digit growth. FactSet consensus forecasts currently point to full-year revenues of $4.42bn, up 6.8% on last year.
Full-year adjusted EBITDA is also now expected to come in at between $1.24bn-1.26bn, ahead of the market estimate of $1.21bn.
Third-quarter revenues were up 8% on last year at $1.39bn, driven by double-digit growth in the Wizards of the Coast business and digital gaming operations, partly offset by declines in consumer products revenues as a result of the timing of US retail orders.
Wizards of the Coast, which includes titles like Monopoly Go!, Magic: The Gathering and Dungeons & Dragons, saw revenues rise 42% year-on-year, with Magic: The Gathering reporting 55% growth and licensed digital gaming revenues growing 21%.
Operating profits were up 39% at $252m, which the company put down to benefits of scale and a favourable business mix.
"Wizards of the Coast led the way as MAGIC: THE GATHERING continues to break records. Consumer Products POS and market share accelerated ahead of the holiday, and our high-margin licensing business is unlocking new opportunities," said chief executive Chris Cocks.
"With major announcements coming at The Game Awards in December, we're poised to enter 2026 with momentum."
Despite the guidance upgrade, the stock was trading 2.9% lower at $73 in pre-market trading.
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