(Bloomberg) -- Hasbro Inc. shares jumped on Thursday after the company beat expectations in the second quarter and boosted its earnings forecast for the full year, driven by the strong performance of digital games, including Monopoly Go!.
Hasbro adjusted its earnings before interest, taxes, depreciation and amortization forecast for the full year to between $975 million and $1.03 billion. Previously, the company was expecting between $925 to $1 billion.
Earnings in the second quarter came to $1.22 a share, excluding some items, the company said Thursday, surpassing the 77-cent average of Wall Street estimates.
Amid post pandemic challenges in the toy business, Hasbro touted the impact of cost-cutting measures like inventory reduction and layoffs. “Hasbro is emerging as a more profitable, agile, and operationally excellent company delighting fans of all ages through the magic of play,” Chief Executive Officer Chris Cocks said in a release.
Shares were up 6% to $63.06 at 9:33 a.m. in New York.
Revenue at Hasbro’s Wizards of the Coast and digital gaming segment, which includes Magic: The Gathering and Dungeons & Dragons, grew 20% to $452 million, beating analysts’ estimates of $396.4 million. Magic: The Gathering has announced several high-profile collaborations recently with top video-game franchises like Microsoft Corp.’s Fallout and Ubisoft Entertainment SA’s Assassin’s Creed, as well as with movie franchises, including Monty Python and The Lord of the Rings.
Earlier this week, Wizards of the Coast announced John Hight, who previously led Microsoft’s World of Warcraft franchise, would become its new president.
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