TSX:TOY - Post Discussion
Post by
retiredcf on Jul 28, 2022 8:58am
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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