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July 23, 2019, 6:35 p.m. EDT

Videogames are struggling, but these types of games are winning

Earnings Watch: Hasbro reports big gains for tabletop games Magic: The Gathering, Dungeons & Dragons and Monopoly

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By Emily Bary


Tim Boyle/Bloomberg
Tabletop games like Monopoly helped Hasbro's franchise-brands segment post its best-ever quarterly revenue increase.

One of the year’s best “gaming” stocks continues to win by following an old-school approach.

As the big videogame companies struggle with changing consumer preferences, Hasbro Inc. /zigman2/quotes/201249319/composite HAS +1.06%  is riding a wave of enthusiasm for tabletop games. The company exceeded expectations for the second-straight quarter on Tuesday, citing strong performances from franchises like Magic: The Gathering, Dungeons and Dragons and Monopoly.

New “retro” Magic: The Gathering releases drove an 11% increase in new-player growth and prompted some fans to flock to digital versions of the title as well, Hasbro said. Magic helped lift Hasbro’s franchise-brands revenue by 14%, marking the unit’s biggest quarterly increase since the company changed up its reporting segments in 2017.

/zigman2/quotes/201249319/composite HAS 120.92, +1.27, +1.06%

Though tabletop games were the high point for Hasbro, the company wants to leverage the momentum through digital tie-ins. Like the major videogame companies, it sees potential in Magic’s competitive-gaming popularity and has plans for an “expanded event schedule” of both digital and tabletop competitions that could boost player engagement and awareness. A Netflix Inc. /zigman2/quotes/202353025/composite NFLX -1.70%  series based on the Magic franchise is also in the works.

With a strong Tuesday rally, Hasbro shares are up more than 40% so far this year and continue to outperform once-hot gaming names like Take-Two Interactive Software Inc. /zigman2/quotes/204008930/composite TTWO +0.64% , Electronic Arts Inc. /zigman2/quotes/206954087/composite EA +1.43% , and Activision Blizzard Inc. /zigman2/quotes/200717283/composite ATVI -0.20%   Even Microsoft Corp. /zigman2/quotes/207732364/composite MSFT +1.84% , which crushed its latest quarter, predicts continuing struggles in its gaming business.

• Two of the biggest bounceback stocks of 2019, Snap Inc. /zigman2/quotes/205087158/composite SNAP -0.12%  and Chipotle Mexican Grill Inc. /zigman2/quotes/200781108/composite CMG -0.34%  , continued to show strength after earnings reports Tuesday afternoon. Snap stock jumped by double-digit percentages in late trading after its quarterly report smashed expectations for revenue and active users, while Chipotle increased its financial forecast for the year to send shares about 4% higher.

• United Technologies Corp. /zigman2/quotes/203237915/composite UTX -0.09%  raised its forecast for the full year, even as it contends with fallout from the Boeing Co. 737 Max groundings and activist criticism of the company’s pending deal for Raytheon Co. /zigman2/quotes/203226062/composite RTN -0.49%  Chief Executive Gregory Hayes said that while “it’s bad news that the 737 Max isn’t flying,” United Technologies’ aftermarket business benefits as airlines look to service the older planes they must operate instead.

Don’t miss: Coca-Cola earnings get a jolt from ready-to-drink Costa Coffee

Of the three Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.19%  components that reported earnings Tuesday morning, United Technologies and Coca-Cola Co. /zigman2/quotes/209159848/composite KO +0.53%  shares gained, while Travelers Cos. Inc. /zigman2/quotes/206313935/composite TRV +0.32%  shares fell.

• Visa Inc. /zigman2/quotes/203660239/composite V +0.38%  was the fourth and final Dow component to report Tuesday afternoon, and shares dropped slightly in after-hours trading despite an earnings beat and raised outlook.

• Texas Instruments Inc. /zigman2/quotes/202237907/composite TXN -0.37%  kicked off the quarter’s semiconductor earnings with an optimistic outlook ahead of reports from chip companies Intel Corp. /zigman2/quotes/203649727/composite INTC -0.33%  and Xilinx Inc. /zigman2/quotes/209389378/composite XLNX -1.24%   later in the week.

/zigman2/quotes/201249319/composite
US : U.S.: Nasdaq
$ 120.92
+1.27 +1.06%
Volume: 1.04M
Sept. 19, 2019 4:00p
P/E Ratio
49.38
Dividend Yield
2.25%
Market Cap
$15.26 billion
Rev. per Employee
$848,083
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/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 286.60
-4.96 -1.70%
Volume: 8.55M
Sept. 19, 2019 4:00p
P/E Ratio
112.39
Dividend Yield
N/A
Market Cap
$125.48 billion
Rev. per Employee
$2.22M
loading...
/zigman2/quotes/204008930/composite
US : U.S.: Nasdaq
$ 130.59
+0.83 +0.64%
Volume: 1.12M
Sept. 19, 2019 4:00p
P/E Ratio
48.37
Dividend Yield
N/A
Market Cap
$14.78 billion
Rev. per Employee
$574,279
loading...
/zigman2/quotes/206954087/composite
US : U.S.: Nasdaq
$ 99.69
+1.41 +1.43%
Volume: 2.69M
Sept. 19, 2019 4:00p
P/E Ratio
13.98
Dividend Yield
N/A
Market Cap
$29.38 billion
Rev. per Employee
$571,613
loading...
/zigman2/quotes/200717283/composite
US : U.S.: Nasdaq
$ 55.01
-0.11 -0.20%
Volume: 4.57M
Sept. 19, 2019 4:00p
P/E Ratio
25.11
Dividend Yield
0.67%
Market Cap
$42.19 billion
Rev. per Employee
$756,869
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/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 141.07
+2.55 +1.84%
Volume: 36.10M
Sept. 19, 2019 4:00p
P/E Ratio
27.82
Dividend Yield
1.30%
Market Cap
$1077.13 billion
Rev. per Employee
$902,473
loading...
/zigman2/quotes/205087158/composite
US : U.S.: NYSE
$ 16.88
-0.02 -0.12%
Volume: 31.80M
Sept. 19, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$23.28 billion
Rev. per Employee
$409,309
loading...
/zigman2/quotes/200781108/composite
US : U.S.: NYSE
$ 832.09
-2.88 -0.34%
Volume: 287,575
Sept. 19, 2019 6:30p
P/E Ratio
93.91
Dividend Yield
N/A
Market Cap
$23.07 billion
Rev. per Employee
$66,644
loading...
/zigman2/quotes/203237915/composite
US : U.S.: NYSE
$ 137.53
-0.13 -0.09%
Volume: 2.19M
Sept. 19, 2019 6:30p
P/E Ratio
22.44
Dividend Yield
2.14%
Market Cap
$118.68 billion
Rev. per Employee
$277,021
loading...
/zigman2/quotes/203226062/composite
US : U.S.: NYSE
$ 199.33
-0.98 -0.49%
Volume: 1.04M
Sept. 19, 2019 6:30p
P/E Ratio
18.36
Dividend Yield
1.89%
Market Cap
$55.51 billion
Rev. per Employee
$403,851
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,094.79
-52.29 -0.19%
Volume: 216.44M
Sept. 19, 2019 5:17p
loading...
/zigman2/quotes/209159848/composite
US : U.S.: NYSE
$ 54.52
+0.29 +0.53%
Volume: 8.09M
Sept. 19, 2019 6:30p
P/E Ratio
33.34
Dividend Yield
2.93%
Market Cap
$233.13 billion
Rev. per Employee
$506,342
loading...
/zigman2/quotes/206313935/composite
US : U.S.: NYSE
$ 146.94
+0.47 +0.32%
Volume: 957,355
Sept. 19, 2019 6:30p
P/E Ratio
14.65
Dividend Yield
2.23%
Market Cap
$38.26 billion
Rev. per Employee
$996,151
loading...
/zigman2/quotes/203660239/composite
US : U.S.: NYSE
$ 175.96
+0.67 +0.38%
Volume: 7.03M
Sept. 19, 2019 6:30p
P/E Ratio
35.03
Dividend Yield
0.57%
Market Cap
$382.33 billion
Rev. per Employee
$1.25M
loading...
/zigman2/quotes/202237907/composite
US : U.S.: Nasdaq
$ 128.83
-0.48 -0.37%
Volume: 2.68M
Sept. 19, 2019 4:00p
P/E Ratio
23.55
Dividend Yield
2.39%
Market Cap
$120.28 billion
Rev. per Employee
$528,105
loading...
/zigman2/quotes/203649727/composite
US : U.S.: Nasdaq
$ 51.57
-0.17 -0.33%
Volume: 11.85M
Sept. 19, 2019 4:00p
P/E Ratio
12.02
Dividend Yield
2.44%
Market Cap
$228.46 billion
Rev. per Employee
$659,665
loading...
/zigman2/quotes/209389378/composite
US : U.S.: Nasdaq
$ 103.62
-1.30 -1.24%
Volume: 2.03M
Sept. 19, 2019 4:00p
P/E Ratio
28.36
Dividend Yield
1.43%
Market Cap
$26.17 billion
Rev. per Employee
$723,353
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Emily Bary is a MarketWatch reporter based in New York.

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