TSX:TOY - Post Discussion
Post by
retiredcf on Feb 14, 2024 3:30pm
Market Movers
On the Rise Toronto-based toymaker Spin Master Corp. ) turned higher after reporting preliminary fourth-quarter 2023 revenue of $502.6-million, up 7.9 per cent year-over-year but below the Street’s forecast of $529.90, according to LSEG data.
“The difference compared to our expectations comes from lower than expected digital games revenues, offset by higher entertainment revenues. Revenues for the toy segment were largely in line with our expectations,” said Stifel analyst Martin Landry. “On the back of these results and recent industry comments, we are slightly tweaking downward our 2024 revenue estimates. 2024 should be a strong year for Spin Master, with revenue growth of 23 per cent year-over-year and EPS growth of 17 per cent year-over-year driven by the Melissa & Doug acquisition and a strong pipeline of new toys and digital games. TOY trades at 6 times our 2024 EBITDA estimates, a good entry point, with limited downside risk, in our view.”
The company’s full results are scheduled to be released after the bell on Feb. 28.
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