Spin Master (TSE:TOY) Posts Quarterly Earnings Results

Spin Master (TSE:TOY) issued its earnings results on Thursday. The company reported C($0.33) earnings per share (EPS) for the quarter, FiscalAI reports. Spin Master had a negative return on equity of 11.45% and a negative net margin of 7.22%.The firm had revenue of C$456.71 million during 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 Stock Up 15.4%

Shares of Spin Master stock opened at C$20.64 on Friday. The company has a debt-to-equity ratio of 37.50, a current ratio of 1.14 and a quick ratio of 2.06. The stock has a market cap of C$2.07 billion, a price-to-earnings ratio of -14.14, a PEG ratio of 0.57 and a beta of 0.76. The firm’s 50-day moving average is C$18.49 and its two-hundred day moving average is C$19.33. Spin Master has a 1 year low of C$17.13 and a 1 year high of C$26.34.

Spin Master Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, April 10th. Shareholders of record on Friday, April 10th were issued a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 2.3%. The ex-dividend date was Friday, March 27th. Spin Master’s dividend payout ratio is presently -23.66%.

Analyst Ratings Changes

Several brokerages recently weighed in on TOY. Royal Bank Of Canada reduced their price target on shares of Spin Master from C$27.00 to C$25.00 and set an “outperform” rating on the stock in a research report on Friday, March 6th. TD Securities reduced their price target on shares of Spin Master from C$30.00 to C$26.00 and set a “buy” rating on the stock in a research report on Thursday, January 29th. National Bank Financial reduced their price objective on Spin Master from C$27.00 to C$25.00 and set an “outperform” rating on the stock in a research note on Tuesday, January 13th. Canaccord Genuity Group reduced their price objective on Spin Master from C$22.00 to C$20.00 and set a “hold” rating on the stock in a research note on Friday, March 6th. Finally, Stifel Nicolaus boosted their price objective on Spin Master from C$20.00 to C$21.00 and gave the stock a “hold” rating in a research note on Friday, March 6th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Spin Master currently has a consensus rating of “Moderate Buy” and a consensus target price 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.