Hasbro Lifts Outlook, But Tariffs Pressure Stock

Hasbro shares dropped 2.25% in premarket trading on Wednesday despite reporting second-quarter earnings that beat Wall Street expectations and raising its full-year guidance, according to Benzinga. The company posted adjusted EPS of $1.30 on $980.8 million in revenue, topping forecasts of 76 cents and $874.28 million, respectively. Growth was driven by a 16% year-over-year increase in its Wizards of the Coast and Digital Gaming segment, while Consumer Products and Entertainment fell 16% and 15%, respectively. Hasbro said tariffs have not yet affected its margins, but expects costs to rise in the third quarter due to holiday inventory builds. CEO Chris Cocks said the results validate the company's Playing to Win strategy. The company now expects full-year revenue to grow by mid-single digits, up from its previous forecast of slight growth. CFO Gina Goetter warned of $60 million in tariff-related costs expected in 2025.