It’s been something of a mixed day for Spin Master (TSE:TOY), as the Canadian toy company put out a revenue report that didn’t quite knock anything out of the park. But as the day continued, sentiment changed a bit, and Spin Master shares saw a noticeable rise to come out fractionally ahead in Wednesday afternoon’s trading.
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Spin Master’s report had both high and low points. Fourth quarter revenue came in at US$502.6 million, which was up 7.9% year-over-year. This was 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 US$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.
Not a Great Time to Be a Toy Company
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 figure out how to cover their food and power bills. We may not be in full recession yet, but for a lot of households, 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 to discuss potential licensing opportunities.
Is Spin Master a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on 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 TOY price target of C$47.50 per share implies 37.48% upside potential.
