As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at toys and electronics stocks, starting with Funko (NASDAQ:FNKO).
The toys and electronics industry presents both opportunities and challenges for investors. Established companies often enjoy strong brand recognition and customer loyalty while smaller players can carve out a niche if they develop a viral, hit new product. The downside, however, is that success can be short-lived because the industry is very competitive: the barriers to entry for developing a new toy are low, which can lead to pricing pressures and reduced profit margins, and the rapid pace of technological advancements necessitates continuous product updates, increasing research and development costs, and shortening product life cycles for electronics companies. Furthermore, these players must navigate various regulatory requirements, especially regarding product safety, which can pose operational challenges and potential legal risks.
The 6 toys and electronics stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 0.8%. while next quarter's revenue guidance was 3.3% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and toys and electronics stocks have held roughly steady amidst all this, with share prices up 4.5% on average since the previous earnings results.
Funko (NASDAQ:FNKO) Boasting partnerships with media franchises like Marvel (NASDAQ:MRVL) and One Piece, Funko (NASDAQ:FNKO) is a company specializing in creating and distributing licensed pop culture collectibles.
Funko reported revenues of $215.7 million, down 14.4% year on year, falling short of analysts' expectations by 2.1%. Overall, it was a decent quarter for the company with an impressive beat of analysts' earnings estimates.
“For the 2024 first quarter, we reported solid overall financial results, with net sales within our guidance range, and gross margin and adjusted EBITDA well above our expectations,” said Michael Lunsford, Funko’s Interim Chief Executive Officer.
Funko achieved the highest full-year guidance raise of the whole group. The stock is up 43.4% since reporting and currently trades at $9.81.
Is now the time to buy Funko? Find out by reading the original article on StockStory, it's free. Best Q1: Hasbro (NASDAQ:HAS)Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ:HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.
Hasbro reported revenues of $757.3 million, down 24.3% year on year, outperforming analysts' expectations by 2.2%. It was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and a decent beat of analysts' Entertainment revenue estimates.
The market seems content with the results as the stock is up 2.8% since reporting. It currently trades at $59.74.
Weakest Q1: Bark (NYSE:BARK)Making a name for itself with the BarkBox, Bark (NYSE:BARK) specializes in subscription-based, personalized pet products.
Bark reported revenues of $121.5 million, down 3.6% year on year, in line with analysts' expectations. It was a weak quarter for the company with revenue guidance for next quarter missing analysts' expectations.
Bark had the weakest full-year guidance update in the group. Interestingly, the stock is up 17.6% since the results and currently trades at $1.67.
Sonos (NASDAQ:SONO)A pioneer in connected home audio systems, Sonos (NASDAQ:SONO) offers a range of premium wireless speakers and sound systems.
Sonos reported revenues of $252.7 million, down 16.9% year on year, surpassing analysts' expectations by 2.1%. Zooming out, it was a weaker quarter for the company with a miss of analysts' earnings estimates and full-year revenue guidance missing analysts' expectations.
The stock is down 13.9% since reporting and currently trades at $15.14.
Mattel (NASDAQ:MAT)Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel (NASDAQ:MAT) is a global children's entertainment company specializing in the design and production of consumer products.
Mattel reported revenues of $809.5 million, flat year on year, falling short of analysts' expectations by 2.8%. More broadly, it was a decent quarter for the company with an impressive beat of analysts' earnings estimates.
Mattel delivered the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 10.1% since reporting and currently trades at $16.86.
This content was originally published on Stock Story
