Spin Master Corp T.TOY

Alternate Symbol(s): SNMSF

Consumer Cyclical Leisure

Spin Master Corp. is a Canada-based children’s entertainment company. The Company creates, designs, manufactures, licenses and markets a diversified portfolio of toys, games and products, creates and produces multiplatform content, stories and characters in both original shows along with short-form series and creates digital games and apps. It operates through three segments: Toys, Entertainment and Digital Games. The Toys segment engages in the creation, design, manufacturing, licensing, and marketing of toys, games and products around the world. The Entertainment segment engages in the creation and production of multi-platform content, stories and characters in both original shows, short-form series and films. The Digital Games segment engages in the creation of digital games and apps which include monthly subscription services. It offers digital games, such as Sago Mini, Toca Boca and Noid. It offers entertainment games, such as Abby Hatcher, Zo Zo Zombie, Mighty Express, and more.

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Spin Master Corp

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Post by retiredcfon Jul 28, 2022 8:58am

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Post# 34856445

RBC

Their upside scenario target is $77.00. GLTA

July 27, 2022

Spin Master Corp.
Q2 results well ahead of forecasts + a dividend

TSX: TOY | CAD 48.46 | Outperform | Price Target CAD 65.00

Sentiment: Positive

First impression: Spin Master reported Q2 results well ahead of RBC and consensus forecasts, and the company reiterated its Gross Product Sales ("GPS"), revenue, and Adjusted EBITDA guidance (noting GPS and revenue guidance are now in constant currency). Q2 Adjusted EBITDA was $113.7MM, well ahead of consensus of $92.1MM. Relative to our forecasts, higher-than-expected GPS, revenue, and Gross Margin %, as well as lower-than-expected SG&A as a % of sales drove Adjusted EBITDA well ahead of RBC and consensus estimates. The top-line outperformance was primarily driven by Toy revenue, while Entertainment was also ahead of our expectations. Digital Games revenue came in below our forecasts (we expect Digital Games to be a focus on the 9:30am ET call tomorrow). We view the "constant-currency" qualifier as precautionary commentary (as opposed to a change in guidance).

Dividend initiated: Spin Master initiated its first-ever quarterly dividend of C$0.06 per share (annualized yield of ~0.5% based on today's closing price) beginning in Q3.

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A junior copper-gold stock trading at a bargain of monumental proportions