Hasbro rises 11.2% after profit beat, outlook lift

What happened

Hasbro (HAS) rose 11.2% on October 20, 2026, because third-quarter results topped estimates and management raised full-year revenue growth guidance to 7% to 9% at constant exchange rates. The company reported earnings per share of $2.90 against $1.86 expected, 55.9% above estimates, and management pointed to stronger revenue and margin expansion, according to Reuters and Business Wire. Investors bid the stock higher after management said Magic: The Gathering delivered record quarterly sales.

How big was the move

The stock closed at $109.52, trading 4.2 times its 20-day average, and opened 4.0% above the previous close. Hasbro rose 11.2% while the S&P 500 rose 0.3%, making the move 5.4 times a typical daily move for this stock. Over the last five sessions the stock rose 14.2%, a company-specific rally contrasted with the S&P 500, which fell 1.2% over the same period.

The technical picture

Technically, the stock traded 17.9% above its 20-day moving average, 18.1% above its 50-day moving average and 20.1% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock had been above the 200-day average for 12 consecutive trading days. Momentum readings were strong: the Relative Strength Index (14 days) stood at 83, above 70, and the shares finished 0.3% below the 52-week high. One-month performance was strong, with the stock up 24.9%.

Fundamentals and valuation

For the four quarters through September 27, 2026, Hasbro reported revenue of $5.18 billion, which grew 18.9% from a year earlier, and diluted earnings per share of $6.69. Gross margin widened to 72.5% from 66.6% a year earlier, and operating margin rose to 26.3% from 5.2% a year earlier. The company generated a free-cash-flow margin of 23.7% and a return on invested capital of 19.0%, while the balance sheet showed net debt of 1.8 times EBITDA. Market value stood at $13.93 billion.

On valuation measures the stock traded at 16.4 times trailing earnings and 17.9 times expected earnings, with a free-cash-flow yield of 8.8%. Its price to trailing earnings was lower than 91% of its own readings over the past five years, against a five-year median of 24.0 times earnings, indicating valuation is compressed relative to recent history. PromtFinance scores placed Hasbro high on Growth (82 Strong), Quality (93 Exceptional) and Momentum (90 Exceptional), with Value at 69 (Positive).

Earnings and analyst expectations

Hasbro reported third-quarter revenue of $1.6 billion, up 15% year-over-year, and third-quarter profit of $394.5 million, or $2.77 a share, versus $233.2 million, or $1.64, a year ago. Adjusted operating profit rose to $541 million, up 52%, and quarterly EPS of $2.90 topped the $1.86 consensus by 55.9%, marking the eleventh consecutive quarter beating estimates, according to Reuters and Business Wire. Management said Magic: The Gathering delivered record quarterly sales, with revenue from the franchise exceeding $600 million in the quarter and growing about 34% year-over-year, which it said drove a large portion of the top-line and profit gains.

Analyst coverage remained broadly positive: 52% of the 33 analysts with a rating had the stock as Buy or Strong Buy, and the consensus rating was Buy. The consensus price target was $107.60, 1.8% below the closing price. Historically, the typical two-day reaction after recent reports was the stock rose 6.1%, and the company’s average surprise over the last four reports was 35.3% above estimates. Hasbro’s next report is scheduled for February 9, 2027.

What to watch

• February 9, 2027: next quarterly report date.
• Full-year revenue growth guidance of 7% to 9% at constant exchange rates set by management.
• Continued performance of Magic: The Gathering, which posted revenue exceeding $600 million in the quarter and grew about 34% year-over-year.
• The doubled share buyback program announced by the company and its impact on share count and capital allocation.