Let’s dig into the relative performance of Mattel (NASDAQ:MAT) and its peers as we unravel the now-completed Q4 toys and electronics earnings season.
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 4 toys and electronics stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.9% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.5% since the latest earnings results.
Best Q4: 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 $1.65 billion, up 1.6% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Ynon Kreiz, Chairman and CEO of Mattel, said: “2024 was a year of strong operational excellence for Mattel with topline growth in the fourth quarter. Our priorities for the year were to grow profitability, expand gross margin, and generate strong free cash flow and we achieved all three objectives, well ahead of expectations. As we progress through 2025, our 80th anniversary year, we look forward to growing both top and bottom line and continuing to successfully execute our multi-year strategy.”
Mattel pulled off the fastest revenue growth of the whole group. The stock is up 15.2% since reporting and currently trades at $20.81.
Is now the time to buy Mattel? Access our full analysis of the earnings results here, it’s free.
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 $1.1 billion, down 14.5% year on year, outperforming analysts’ expectations by 7.6%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Hasbro pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.3% since reporting. It currently trades at $63.10.
Is now the time to buy Hasbro? Access our full analysis of the earnings results here, it’s free.
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 $126.4 million, up 1.1% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
Bark delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 22.8% since the results and currently trades at $1.51.
Read our full analysis of Bark’s results here.
Funko (NASDAQ:FNKO)
Boasting partnerships with media franchises like Marvel and One Piece, Funko (NASDAQ:FNKO) is a company specializing in creating and distributing licensed pop culture collectibles.
Funko reported revenues of $293.7 million, flat year on year. This result topped analysts’ expectations by 2.7%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates.
Funko pulled off the highest full-year guidance raise among its peers. The stock is down 25.7% since reporting and currently trades at $7.69.
Read our full, actionable report on Funko here, it’s free.
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