Spin Master (TSE:TOY) Releases Earnings Results

Spin Master (TSE:TOY) issued its earnings results on Thursday. The company reported C($0.33) earnings per share for the quarter, FiscalAI reports. Spin Master had a negative return on equity of 12.40% and a negative net margin of 7.69%.The company had revenue of C$456.71 million for the quarter.

Here are the key takeaways from Spin Master’s conference call:

• Q1 consolidated revenues fell ~9% (~$31M) year-over-year due to a 2025 retail order pull-forward; while results beat expectations, adjusted EBITDA declined by ~$4M and adjusted operating loss rose ~ $18M driven largely by ~$14M of increased depreciation and amortization.
• Operating cash flow strengthened to $103 million on better working capital, tax refunds and lower cash operating expenses, with net leverage around 0.9x and ~$40 million used to pay down debt.
• Product and brand momentum — toy POS grew (notably Primal Hatch, DreamWorks’ Dragons, Monster Jam, Melissa & Doug, and GUND), Monster Jam partnership extended 10+ years, and PAW Patrol movie marketing is building strong engagement that the company expects to monetize via product, content and a digital game.
• Digital revenues declined ~2% and Toca Boca World performed below expectations; management is prioritizing user experience and rolling out monetization changes and content drops to drive improvement in the second half.
• Geopolitical-driven input-cost risk — higher oil could raise freight, resin and packaging costs with an estimated gross impact of ~$15 million (mostly H2), though management says mitigation plans are underway and guidance was reiterated.

Spin Master Price Performance

TOY stock opened at C$20.35 on Friday. Spin Master has a 52 week low of C$17.13 and a 52 week high of C$26.34. The company has a quick ratio of 2.06, a current ratio of 1.10 and a debt-to-equity ratio of 35.23. The company has a fifty day simple moving average of C$18.49 and a two-hundred day simple moving average of C$19.33. The firm has a market capitalization of C$2.04 billion, a P/E ratio of -13.94, a price-to-earnings-growth ratio of 0.57 and a beta of 0.76.

Spin Master Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, April 10th. Shareholders of record on Friday, April 10th were given a dividend of $0.12 per share. The ex-dividend date was Friday, March 27th. This represents a $0.48 annualized dividend and a yield of 2.4%. Spin Master’s dividend payout ratio (DPR) is -23.66%.

Analyst Ratings Changes

A number of equities analysts recently weighed in on TOY shares. Stifel Nicolaus upped their target price on shares of Spin Master from C$20.00 to C$21.00 and gave the stock a “hold” rating in a research report on Friday, March 6th. ATB Cormark Capital Markets upped their target price on shares of Spin Master from C$36.00 to C$38.00 and gave the stock an “outperform” rating in a research report on Friday, March 6th. Canaccord Genuity Group dropped their target price on shares of Spin Master from C$22.00 to C$20.00 and set a “hold” rating for the company in a research report on Friday, March 6th. Jefferies Financial Group upped their target price on shares of Spin Master from C$23.00 to C$26.00 and gave the stock a “buy” rating in a research report on Friday. Finally, TD Securities dropped their target price on shares of Spin Master from C$30.00 to C$26.00 and set a “buy” rating for the company in a research report on Thursday, January 29th. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of C$27.22.

Spin Master Company Profile

Spin Master is a children’s entertainment company operating in the roughly $100 billion global toy industry. The company creates, designs, manufactures, and markets a portfolio of products, brands, and entertainment properties across four key categories (outdoor, boys, preschool and girls, and activities games and puzzles and plush). Spin Master has increased brand awareness via homegrown brands including Paw Patrol, Rusty Rivets, and Bakugan but has leaned on a robust acquisition strategy to reach adjacent markets through tie-ups like Rubik’s, Swimways, and Cardinal Games.