Jamie Spencer
Hasbro (HAS) saw its shares soar on Thursday after posting stronger-than-expected results for the first quarter and announcing an extension of its lucrative licensing agreement with Disney (DIS).
Strong Q1 Performance
The toy and board game giant reported adjusted earnings per share (EPS) of $1.04, surpassing analysts’ expectations. Revenue climbed 17% year-over-year to $887.1 million, exceeding estimates compiled by Visible Alpha. CEO Chris Cocks expressed confidence in the company’s “Playing to Win” strategy, which was unveiled last quarter, aimed at ensuring consistent revenue growth through 2027. “This strategy is delivering in a challenging environment,” Cocks said, pointing to the company’s resilience despite economic pressures.
Outlook Remains Steady
Despite the uncertainties in the current tariff environment, Hasbro refrained from changing its full-year projections. The company maintained its previous outlook, forecasting “slight” revenue growth for 2025 and adjusting EBITDA between $1.1 billion and $1.15 billion. Hasbro’s cautious approach reflects its focus on navigating global economic challenges, including ongoing trade uncertainties.
Continued Partnership with Disney
In a separate announcement, Hasbro confirmed the extension of its long-running licensing deal with Disney, ensuring that the toy maker will continue producing toys and games based on iconic Disney franchises like Marvel and Star Wars. This extension provides a stable revenue stream for Hasbro as it continues to leverage its strong relationship with one of the world’s most successful entertainment companies.
Market Reaction and 2025 Growth
Hasbro’s stock surged by 13% in early trading on Thursday and has risen approximately 7% since the start of 2025. The company’s strong quarterly results and the Disney deal extension have provided investors with renewed confidence, especially as Hasbro navigates the uncertainties of global trade policies and their impact on business operations.
