Hasbro's Stock: Optimistic Outlook from Wall Street?
Hasbro, Inc. (HAS), the global leader in the design, manufacture, and marketing of toys, games, and entertainment content, reported its Q2 2025 earnings on July 23, displaying a mixed performance.
Revenue for Q2 2025 was approximately $981 million, a 2% decrease year-over-year, but the company managed to exceed analysts’ expectations on adjusted EPS, reporting $1.30 versus the $0.78 consensus estimate. The strong adjusted EPS was driven largely by a 23% revenue increase in the Magic: The Gathering segment, offsetting weaker results elsewhere. However, the company reported a net loss of $856 million mainly due to a $1 billion goodwill impairment charge linked to tariffs.
Despite the challenges, Hasbro remains optimistic about its future. The company raised both its revenue and earnings guidance for fiscal year 2025, expecting a return to growth with record operating margins. This outlook includes reaffirming a positive midterm perspective backed by the strength of its diversified portfolio and operational improvements. Analysts expect adjusted EPS growth for FY 2025 to be around $4.33 per share on average, reflecting confidence in the company’s turnaround despite a challenging retail environment and tariff-related uncertainties.
Key details include:
- Q2 2025 revenue: Approximately $981 million, down ~2% YoY
- Q2 2025 adjusted EPS: $1.30 (beat estimates of $0.78)
- Net loss in Q2 mainly due to $1 billion goodwill impairment
- Magic: The Gathering segment revenue growth of 23%
- Raised full-year 2025 guidance with expectations of returning to growth backed by record operating margins
- Analysts project FY 2025 adjusted EPS around 4.33
Investors were initially concerned about a 16% drop in consumer products sales due to U.S. retailers delaying orders amid tariff uncertainty. However, the Street-high price target of $95 implies a potential upside of 18.7% from the current price levels. On a YTD basis, shares of Hasbro have climbed 43.2%, compared to SPX's over 9% rise. Over the past 52 weeks, HAS stock has increased 20.7%, while the S&P 500 Index has rallied 14.3%.
JPMorgan maintains an "Overweight" rating for Hasbro, Inc. (HAS), and recently raised its price target to $94. The current consensus rating is more bullish than it was three months ago, with an additional two "Strong Buy" ratings. Despite posting better-than-expected Q2 2025 adjusted EPS and revenue, Hasbro shares fell marginally on Jul. 23.
Hasbro has licensed partnerships with major franchises like STAR WARS, MARVEL, and The Lord of the Rings, and its portfolio includes iconic brands like MAGIC: THE GATHERING, NERF, TRANSFORMERS, PLAY-DOH, and MY LITTLE PONY. For more information, please view the article's Disclosure Policy here.
For the fiscal year ending in December 2025, analysts expect HAS' adjusted EPS to grow 21.5% year-over-year to $4.87. Hasbro, Inc. (HAS) has a market cap of $11.2 billion.
This reflects a cautious but optimistic stance from management, who are navigating retailer purchasing delays and tariff costs but remain confident in a rebound later in the year and continued operational progress.
References:
- Hasbro Q2 Earnings Beat Estimates, But Net Loss Soars on Goodwill Impairment Charge, CNBC, 23 July 2025, link
- Hasbro's Q2 Earnings: Here's What to Watch, The Motley Fool, 22 July 2025, link
- Hasbro Stock Rises on Q2 Earnings Beat, Barron's, 23 July 2025, link
- Hasbro Q2 2025 Earnings: What You Need to Know, InvestorPlace, 23 July 2025, link
- Hasbro's Q2 2025 Earnings: A Mixed Bag, Seeking Alpha, 23 July 2025, link
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