Marvel Studios "Avengers: Endgame"
- Hasbro beat analysts' expectations for second-quarter earnings, boosted by gains from its partnership with Disney's Marvel Studios.
- Shares of the toy maker soared more than 9% on Tuesday to a record high.
- Marvel announced its next phase of movies and TV shows on Saturday at San Diego Comic-Con. Hasbro intends to extend its contract with Disney to be its main toymaker.
- Watch Hasbro trade live on Markets Insider.
Hasbro's master license for Disney's Marvel is paying off big time. Strong demand for toys from "Avengers: Endgame" helped the toy maker beat on second-quarter earnings, sending the stock up more than 9% Tuesday to a record high.
The largest publicly traded toy maker has struck a deal with Disney to create products for its group of superhero films. While the deal will expire at the end of 2020, Hasbro told CNBC it plans to renew it for several years.
Given Marvel's new slate of upcoming movies and TV shows, Hasbro stands to make a lot of money on toys for the franchises in the future. On Saturday, Disney's Marvel Studios announced its next phase at Comic-Con in San Diego. The new round includes "Black Widow," "Eternals," "The Falcon and the Winter Soldier," among others.
The slate includes both movies that will be released in theaters and TV shows for Disney+, Disney's upcoming subscription service. Hasbro will make toys for both the movies and television shows, expanding on its success at popularizing Marvel's characters for multiple toy audiences. In addition to a line of action figures meant for theatrical releases, Hasbro has offerings for superfans or collectors, and also a line of toys as part of Playskool for the youngest superhero fans.
While there is no guarantee that any of the upcoming Marvel projects will be hits, the projects include star-studded casts with actors Angelina Jolie, Kumail Nanjiani, Salma Hayek, Florence Pugh, and Rachel Weisz signing on. And just because many of the new projects will introduce audiences to lesser-known Marvel characters doesn't mean that they won't be successful - "Black Panther" was little-known to audiences before its release but brought in $1.344 billion at the box office and sold well for Hasbro.
"Avengers: Endgame" brought in $2.783 billion at the box office, and broke numerous records. It was the highest-grossing film of all time worldwide. "Spider-Man: Far From Home" was also a box office hit, bringing in more than $580 million in its first weekend in theaters.
Hasbro reported that its revenue growth in partner brands over the second quarter was primarily due to increases in the Avengers and Spider Man franchises.
Hasbro is up 49% year to date.
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