The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Snap (NYSE:SNAP) One (NASDAQ:SNPO) and the rest of the toys and electronics stocks fared in Q4.
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 7 toys and electronics stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 0.6%. while next quarter's revenue guidance was 3.3% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but toys and electronics stocks have performed well, with the share prices up 11.6% on average since the previous earnings results.
Snap One (NASDAQ:SNPO) Founded to revolutionize the way people interact with their homes and offices, Snap One (NASDAQ:SNPO) is a provider of smart living technology, offering innovative home automation, audio-video, and security products.
Snap One reported revenues of $264.4 million, down 1.4% year on year, in line with analysts' expectations. Overall, it was a slower quarter for the company with full-year revenue guidance missing analysts' expectations.
Management Commentary“We delivered another strong year in 2023 despite continued global uncertainty, channel inventory destocking, and rising interest rates,” said Snap One CEO John Heyman.
The stock is up 42.8% since reporting and currently trades at $10.74.
Is now the time to buy Snap One? Find out by reading the original article on StockStory, it's free. Best Q4: 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 happy with the results as the stock is up 6.9% since reporting. It currently trades at $62.13.
Weakest Q4: 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 posted the weakest full-year guidance update in the group. Interestingly, the stock is up 25.4% since the results and currently trades at $1.78.
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%. Taking a step back, it was a decent quarter for the company with an impressive beat of analysts' earnings estimates.
Mattel pulled off the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 9.4% since reporting and currently trades at $16.99.
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.
Funko scored the highest full-year guidance raise among its peers. The stock is up 38.9% since reporting and currently trades at $9.50.
This content was originally published on Stock Story
