Hasbro, Inc. (NASDAQ:HAS) stock fell Wednesday after the toy and gaming company reported mixed first-quarter results and maintained its full-year outlook.

Quarterly Results Top Earnings Estimates

The company reported first-quarter adjusted earnings of $1.47 per share, beating the analyst consensus estimate of $1.25. Revenue rose 13% year over year to $1.00 billion but missed Wall Street expectations of $1.06 billion.

Growth was driven by a 26% increase in Wizards and Digital Gaming revenue, while Consumer Products revenue was flat. Entertainment revenue declined 24%, partially offsetting those gains.

Profit Margins Expand As Operating Performance Improves

Adjusted operating profit increased to $287.0 million from $222.4 million a year earlier. Adjusted operating margin expanded to 28.7% from 25.1%.

Hasbro ended the quarter with $857.1 million in cash and cash equivalents. Inventories totaled $280.5 million.

Shareholder Returns And Debt Reduction Efforts Continue

The company returned $106 million to shareholders through dividends and share repurchases during the quarter.

Hasbro also allocated $96 million toward debt reduction, including the issuance of $400 million in new notes. The proceeds are expected to be used to repay debt maturing in November 2026 and repurchase higher-interest, longer-term ...