May 20 (Reuters) – Hasbro on Wednesday reaffirmed its annual forecasts even as it reported first-quarter revenue and profit above estimates due to strong demand for its digital games such as “Magic: The Gathering.”
Shares of the Play-Doh maker fell about 8% in early trading.
The company said it aims to mitigate an annual impact of about $30 million from rising oil prices – which affect freight, resin, and packaging costs for Hasbro – in the back half of the year.
Hasbro, which relies on third-party manufacturers in countries including China and Vietnam for the majority of its products, said it expects roughly $50 million in tariff refunds, following the Supreme Court ruling against President Donald Trump’s import duties.
“The macro environment continues to require agility,” CFO Gina Goetter said in a post-earnings call.
Hasbro expects annual revenue to grow 3% to 5% and adjusted core profit between $1.4 billion and $1.45 billion.
The company had forecast its preliminary first-quarter results last month after identifying unauthorized access to its network in late March. Hasbro had also released unaudited quarterly results in a regulatory filing last week.
The unauthorized access has been contained, Hasbro said, adding that it plans to seek reimbursement of costs and losses related to the incident from its cybersecurity insurers.
The company reported quarterly revenue of $1 billion, compared with analysts’ average estimate of $964.38 million, according to data compiled by LSEG.
Strength in the company’s digital gaming business and partnerships with popular online shows and films, including the tie-up with Netflix to make toys and card games linked to the popular “K-Pop Demon Hunters” movie, helped boost sales.
Quarterly revenue in its Wizards of the Coast and Digital Gaming segment rose about 26%.
Hasbro also reported adjusted earnings per share of $1.47, beating analysts’ estimate of $1.13, helped by the strong demand as well as cost-saving initiatives.
Rival Mattel also reaffirmed its annual forecasts last month, despite a quarterly sales beat helped by growth in its IP-led entertainment business.
(Reporting by Koyena Das and Neil J Kanatt in Bengaluru; Editing by Devika Syamnath)
