Hasbro surpasses second-quarter expectations and intensifies its focus on the digital gaming division.

• Hasbro surpassed Wall Street expectations in the second quarter, thanks to the expansion of its digital gaming division.
• In contrast to the previous year, when Hasbro reported a net loss of $234.9 million, the company recorded a net income of $138.5 million in the latest quarter.
• During the company's earnings call, CEO Chris Cocks announced that the company is fully committing to the development of digital gaming.

The digital gaming segment contributed to the toy company's beating of Wall Street expectations in the second quarter, which was announced on Thursday.

Shares of the company jumped more than 4% in early trading.

Based on a survey of analysts by LSEG, how did Hasbro perform in the quarter ended June 30 compared with Wall Street's expectations?

• Earnings per share: $1.22 adjusted vs. 78 cents expected
• Revenue: $995 million vs. $944 million expected

In the previous quarter, Hasbro reported a net loss of $235 million, or $1.69 per share, while this quarter they reported a net income of $138.5 million, or 99 cents per share, representing a substantial improvement from the previous year.

Despite a 18% overall decline in revenue for the quarter, Hasbro's Wizards of the Coast and digital gaming segment experienced a 20% increase in revenue. This growth partially offset a 20% decline in consumer product revenue and a 90% decline in the entertainment segment, which was driven by the divestiture of production studio eOne.

The revenue increase for Wizards of the Coast and digital gaming was attributed by Hasbro to the launch of Modern Horizons 3 and the continued impact of licensed and digital gaming, with Monopoly Go! and Baldur's Gate 3 leading the way.

Wizards of the Coast and digital gaming has been appointed as president by John Hight, as announced by CEO Chris Cocks during the company's earnings call. The CEO also stated that the company continues to invest in its digital gaming portfolio.

"We're going all in on becoming a digital play company with the addition of John to our team," Cocks said.

Wizards of the Coast revenue is projected to decline by 1% to 3%, while Hasbro anticipates a 7% to 11% drop in consumer product revenue for the full year.

Hasbro anticipates a full-year adjusted EBITDA of between $975 million and $1.025 billion, while also planning to reduce expenses by $750 million by 2025.