Why is Hasbro stock the worst S&P 500 performer today despite earnings beat?

Shares of Hasbro fell sharply on Wednesday even after the toy and gaming company reported stronger-than-expected first-quarter earnings and revenue, as investors focused on the company’s decision to maintain rather than raise its full-year outlook.

Hasbro stock dropped roughly 8.32% to $89.09, making it the worst-performing stock in the S&P 500 during the session.

The decline marked the stock’s steepest one-day drop since April 2025.

Despite the sell-off, Hasbro shares remain up about 7.3% year to date and roughly 30% higher over the past 12 months.

However, the stock still trades nearly 26% below its all-time closing high reached in July 2019.

The company, known for franchises including Monopoly, Magic: The Gathering, Dungeons & Dragons, and Wizards of the Coast, posted adjusted first-quarter earnings of $1.47 per share, above Wall Street expectations of roughly $1.20 per share.

Revenue rose 13% year over year to approximately $1 billion, exceeding analyst forecasts of $969.2 million.

Investors focus on unchanged outlook

Despite the earnings beat, investor sentiment weakened after Hasbro reiterated rather than raised its full-year guidance.

The company maintained expectations for annual revenue growth of 3% to 5% and adjusted EBITDA between $1.4 billion and $1.45 billion.

Analysts at Morgan Stanley said the decision was consistent with Hasbro’s usual practice of reaffirming guidance after the first quarter, although the scale of the earnings beat raised expectations that management could issue a more optimistic forecast.

The analysts wrote that the “magnitude” of the first-quarter results “suggested to us that a raise wasn't out of the question.”

Chief Executive Officer Chris Cocks defended the decision during the company’s earnings call.

“We think that's the prudent move,” Cocks said. “I would say Q1 was a great start to the year. I think there's a lot of tailwinds that are blowing the business.”

The company also cited several macroeconomic pressures, including rising oil prices and tariff uncertainty, which executives said continue to affect freight and operating costs.

Chief Financial Officer Gina Goetter said the company expects approximately $30 million in additional costs this year tied to higher oil prices. Hasbro is also seeking tariff refunds totaling about $50 million.

Cybersecurity incident adds uncertainty

Investors also weighed the potential impact of a cybersecurity breach disclosed earlier this year.

Hasbro said unauthorized access to its network in late March continues to affect parts of its operations, and the company has not yet determined the full financial impact of the incident.

Management said the company expects to incur roughly $20 million in additional operating expenses related to the breach.

Some systems and operations have not yet been fully restored, although Hasbro said it believes the “unauthorized access has been contained.”

The company added that it plans to seek reimbursement through cybersecurity insurance coverage.

Hasbro also said the incident is expected to delay between $40 million and $60 million in consumer products revenue from the second quarter into the second half of the year.

Executives told analysts that the disruption has altered expectations for quarterly performance, with the third quarter now expected to become the company’s strongest period of the year.

Wizards segment continues driving growth

Hasbro’s latest results once again highlighted the company’s reliance on its gaming and digital businesses.

Revenue in Hasbro’s games division rose 26% during the quarter, while traditional toy sales remained flat and entertainment revenue declined.

Management said the Wizards of the Coast and digital gaming segment continued to offset weaker trends in consumer products and entertainment.

The company maintained that its full-year guidance remains achievable despite ongoing operational and macroeconomic challenges, though investors appeared concerned that growth could slow later in the year.