Another AssessmentTOY reported stronger-than-expected 1Q22 results, supported by strong top-line and margin improvement. Management raises 2022 revenue guidance as profit grew multiple-fold year-over-year. Revenue of US$424.2 million was reported, up from $316.6 million in 1Q21, and beating estimates of $368.6 million. Adjusted net income came in at $57.7 million or $0.55 per share, ahead of estimates of $15.7 million or $0.17 per share. Now with operational and supply chain issues largely behind, we think TOY has come out with improved outlook and growth prospects. Inflation has shifted consumers from higher-priced toys to medium-priced toys, but with strong volume. We would be okay adding to a position with consideration of increased market volatility.
Provided by the team at 5iResearch. GLTA