Strong Beat; Measured Uptick to Guide as Top End of Range Implies Magic H2 Unchanged with Room for Upside

研报英文原文证据摘录

Strong Beat; Measured Uptick to Guide as Top End of Range Implies Magic H2 Unchanged with Room for Upside

EBITDA guide for the year of $1.45-$1.50B is up from $1.40-$1.45B previously,

and in line with Street's $1.447B estimates.

Hasbro records $56M of impairment related to "refocused" Digital Games

portfolio for 2028 and beyond in Q2.

Q2 adj. EPS of $1.28 beats UBSe $1.08 and Street's $1.14

We note adjusted EPS includes $0.04 of restructuring and severance costs and $0.01 of

"strategic transformation initiatives" charges that are added back to EPS, though even

without those add-backs EPS is significantly ahead of estimates, driven by margin

outperformance and underlying gaming strength.

Q2 net revenue was +16%, significantly ahead of implied guide of up around +8%,

UBSe and Street's +9% growth with outperformance both in Wizard and consumer

products segment. Adj. op profit of $282M is meaningfully above our $234M and

Street's $253M, with operating profit margin for the quarter at 24.8%, ahead of our

22% estimate and Street's 23.7%. Q2 adj. EBITDA came in at $330M, nicely ahead of

consensus $295M.

Wizard and Digital revenues were up +27%, significantly ahead of guidance of

mid teens % growth, and above our and Street's estimate of +16%, driven by

+30% increase in tabletop gaming and +17% increase in digital/licensing gaming.

Magic The Gathering grew +32% in the quarter, significantly ahead of

expectations. Monopoly Go! contributed $44M of revenue for the quarter, (was

$41M in Q1'26 and $168M of revenue for FY), slightly better than expectations.

Consumer Product revenues were up +5%, better than implied guide of flattish,

and above our and Street's +1% driven by entertainment releases, Star Wars: The

Mandalorian and Grogu, and momentum in GEM2 categories.