HomeNewsMixed-Bag Revenue Report Puts Spin Master (TSE:TOY) Up Fractionally – TipRanks Financial...

Mixed-Bag Revenue Report Puts Spin Master (TSE:TOY) Up Fractionally – TipRanks Financial Blog

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It’s been something of a mixed day for Spin Master (TSE:TOY), as the Canadian toy company put up an earnings report that didn’t quite knock anything out of the park. But as the day continued, sentiment changed a bit, and Spin Master shares took a noticeable rise back up to come out fractionally ahead in Wednesday afternoon’s trading.

Spin Master’s earnings report had both high points and low, including quite a few gains. Fourth quarter revenue—huge for a toy company, considering where the fourth quarter usually is—turned out up in a big way. It came in at $502.6 million US, which was up fully 7.9% against earlier totals of $465.8 million. And this in an environment where more shoppers turned to buy now pay later (BNPL) options for the holiday shopping season. But it wasn’t all good news, as revenue for 2023 came in at $1.9049 billion, down from the 2022 figure of $2.0203 billion thanks to a slump in toy sales. Even this cloud came with a silver lining, as entertainment products and digital games revenue picked up some of the slack.

Worsening Conditions, But Sparks Persist

It is not a great time to be a toy company right now. Entertaining children is probably on the back burner for a lot of households out there who are trying frantically to somehow figure out how to cover their food and power bills. We may not be in full recession yet, but for a lot of households out there, it sure feels that way. But Spin Master is gamely moving on anyway; it’s already signed up for the Licensing Expo 2024, where it will join a panoply of game and entertainment companies, and some believe that the recent price cuts might provide a decent entry point for this stock.

Is Spin Master a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:TOY stock based on four Buys assigned in the past three months, as indicated by the graphic below. After a 7.27% loss in its share price over the past year, the average TSE:TOY price target of $47.50 Canadian per share implies 37.48% upside potential.

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