Latest news with #Hotwheels
Yahoo
7 days ago
- Business
- Yahoo
Q1 Earnings Recap: Hasbro (NASDAQ:HAS) Tops Toys and Electronics Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how toys and electronics stocks fared in Q1, starting with Hasbro (NASDAQ:HAS). The toys and electronics industry presents both opportunities and challenges for investors. Established companies often enjoy strong brand recognition and customer loyalty while smaller players can carve out a niche if they develop a viral, hit new product. The downside, however, is that success can be short-lived because the industry is very competitive: the barriers to entry for developing a new toy are low, which can lead to pricing pressures and reduced profit margins, and the rapid pace of technological advancements necessitates continuous product updates, increasing research and development costs, and shortening product life cycles for electronics companies. Furthermore, these players must navigate various regulatory requirements, especially regarding product safety, which can pose operational challenges and potential legal risks. The 4 toys and electronics stocks we track reported an exceptional Q1. As a group, revenues beat analysts' consensus estimates by 2.4% while next quarter's revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results. Credited with the creation of toys such as Mr. Potato Head and the Rubik's Cube, Hasbro (NASDAQ:HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families. Hasbro reported revenues of $887.1 million, up 17.1% year on year. This print exceeded analysts' expectations by 14.8%. Overall, it was an incredible quarter for the company with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. 'Hasbro's Playing to Win strategy is delivering in a challenging environment. We're outperforming today and building for tomorrow through disciplined execution, standout partnerships like our extended Disney agreement, and future-focused bets that are already paying off,' said Chris Cocks, Hasbro Chief Executive Officer. Hasbro achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is up 26% since reporting and currently trades at $66.32. Is now the time to buy Hasbro? Access our full analysis of the earnings results here, it's free. Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel (NASDAQ:MAT) is a global children's entertainment company specializing in the design and production of consumer products. Mattel reported revenues of $826.6 million, up 2.1% year on year, outperforming analysts' expectations by 4.4%. The business had an exceptional quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. The market seems happy with the results as the stock is up 14.9% since reporting. It currently trades at $18.59. Is now the time to buy Mattel? Access our full analysis of the earnings results here, it's free. Making a name for itself with the BarkBox, Bark (NYSE:BARK) specializes in subscription-based, personalized pet products. Bark reported revenues of $115.4 million, down 5% year on year, falling short of analysts' expectations by 9.9%. It was a mixed quarter as it posted a solid beat of analysts' EPS estimates but a significant miss of analysts' adjusted operating income estimates. Bark delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 29.3% since the results and currently trades at $0.96. Read our full analysis of Bark's results here. Boasting partnerships with media franchises like Marvel and One Piece, Funko (NASDAQ:FNKO) is a company specializing in creating and distributing licensed pop culture collectibles. Funko reported revenues of $190.7 million, down 11.6% year on year. This number met analysts' expectations. It was an exceptional quarter as it also produced a solid beat of analysts' EBITDA estimates. Funko had the slowest revenue growth among its peers. The stock is up 15.5% since reporting and currently trades at $4.84. Read our full, actionable report on Funko here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
05-05-2025
- Business
- Yahoo
Mattel (NASDAQ:MAT) Delivers Strong Q1 Numbers
Toy manufacturing and entertainment company (NASDAQ:MAT) announced better-than-expected revenue in Q1 CY2025, with sales up 2.1% year on year to $826.6 million. Its non-GAAP loss of $0.03 per share was 70.4% above analysts' consensus estimates. Is now the time to buy Mattel? Find out in our full research report. Revenue: $826.6 million vs analyst estimates of $791.5 million (2.1% year-on-year growth, 4.4% beat) Adjusted EPS: -$0.03 vs analyst estimates of -$0.10 (70.4% beat) Adjusted EBITDA: $57.2 million vs analyst estimates of $48.57 million (6.9% margin, 17.8% beat) Operating Margin: -6.4%, down from -3.2% in the same quarter last year Free Cash Flow was -$11.4 million, down from $5 million in the same quarter last year Market Capitalization: $5.29 billion Ynon Kreiz, Chairman and CEO of Mattel, said: 'This was a strong quarter for Mattel, with positive performance and continued operational excellence. Our brands are thriving, our products and experiences stand out in the marketplace, and our balance sheet gives us resilience and flexibility to execute our strategy. As we navigate the current period of macro-economic volatility, we are adapting with speed, agility, and discipline. We expect not only to manage through this period but strengthen our competitive position.' Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel (NASDAQ:MAT) is a global children's entertainment company specializing in the design and production of consumer products. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Mattel's 4.1% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the consumer discretionary sector and is a tough starting point for our analysis. Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Mattel's recent performance shows its demand has slowed as its annualized revenue growth of 1.8% over the last two years was below its five-year trend. This quarter, Mattel reported modest year-on-year revenue growth of 2.1% but beat Wall Street's estimates by 4.4%. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. This projection is underwhelming and suggests its newer products and services will not accelerate its top-line performance yet. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Mattel's operating margin might fluctuated slightly over the last 12 months but has generally stayed the same, averaging 13% over the last two years. This profitability was solid for a consumer discretionary business and shows it's an efficient company that manages its expenses well. In Q1, Mattel generated an operating profit margin of negative 6.4%, down 3.2 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Mattel's full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it's at a critical moment in its life. In Q1, Mattel reported EPS at negative $0.03, up from negative $0.05 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Mattel's full-year EPS of $1.65 to stay about the same. We were impressed by how Mattel blew past analysts' revenue, EPS, and EBITDA expectations this quarter. On the other hand, it pulled its guidance due to macro uncertainty. Zooming out, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 2.3% to $15.80 immediately after reporting. Big picture, is Mattel a buy here and now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-04-2025
- Business
- Yahoo
3 Cash-Producing Stocks with Questionable Fundamentals
Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities. Luckily for you, we built StockStory to help you separate the good from the bad. That said, here are three cash-producing companies that don't make the cut and some better opportunities instead. Trailing 12-Month Free Cash Flow Margin: 10.5% Specializing in local media coverage, Gray Television (NYSE:GTN) is a broadcast company supplying digital media to various markets in the United States. Why Should You Sell GTN? Sales were flat over the last two years, indicating it's failed to expand its business Forecasted revenue decline of 11.8% for the upcoming 12 months implies demand will fall off a cliff Free cash flow margin is forecasted to shrink by 10 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors At $3.38 per share, Gray Television trades at 0.4x forward EV-to-EBITDA. If you're considering GTN for your portfolio, see our FREE research report to learn more. Trailing 12-Month Free Cash Flow Margin: 4.4% Established in Illinois, Accel Entertainment (NYSE:ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues. Why Is ACEL Not Exciting? 12.7% annual revenue growth over the last two years was slower than its consumer discretionary peers Estimated sales growth of 6.1% for the next 12 months implies demand will slow from its two-year trend Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital Accel Entertainment's stock price of $10.71 implies a valuation ratio of 11.6x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than ACEL. Trailing 12-Month Free Cash Flow Margin: 11.1% Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel (NASDAQ:MAT) is a global children's entertainment company specializing in the design and production of consumer products. Why Do We Avoid MAT? Products and services fail to spark excitement with consumers, as seen in its flat sales over the last two years Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 1.8% Eroding returns on capital suggest its historical profit centers are aging Mattel is trading at $15.58 per share, or 9.9x forward price-to-earnings. Check out our free in-depth research report to learn more about why MAT doesn't pass our bar. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
