- Spin Master reported total revenue of $400.7 million for the second quarter, falling short of the estimated $418.4 million.
- Toy revenue was recorded at $322.3 million.
- Entertainment revenue reached $32.1 million, below the estimated $33.9 million.
- Digital games revenue exceeded expectations, coming in at $46.3 million compared to the $39.7 million estimate.
- The adjusted loss per share was 7.0 cents, against an estimated earnings per share of 8.6 cents.
- Adjusted EBITDA was $28.7 million, which did not meet the expected $46.7 million.
- The adjusted EBITDA margin was 7.2%, lower than the anticipated 11%.
- Spin Master posted an adjusted net loss of $7.4 million, whereas a profit of $8.8 million was expected.
- The company experienced a negative free cash flow of $15.2 million.
- Comments from the company indicated that revenue pressure was due to changes in retailer ordering patterns, influenced by global tariffs.
- Despite this, there was strong double-digit growth in the Digital Games segment, supporting revenue to some extent.
- Spin Master managed to maintain and gain market share in the Toy segment while continuing to expand in Digital Games.
- Profitability was challenged by a reduced revenue base and strategic investments.
- Analyst sentiment included 7 buy recommendations, 2 holds, and no sell ratings.
A look at Spin Master Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Spin Master Corp. looks promising for the long term based on the Smartkarma Smart Scores. With a solid Value score of 4, the company is deemed to be undervalued relative to its fundamentals. Additionally, a Momentum score of 4 suggests positive market momentum, indicating potential for future growth. While the Growth, Resilience, and Dividend scores are all at a moderate level of 3, showing a stable foundation and consistent performance. Spin Master‘s focus on creating, designing, and marketing toys, games, and entertainment properties positions it well in the global market.
In summary, Spin Master Corp. is a company that excels in providing innovative toys, games, and entertainment properties to a diverse customer base worldwide. The Smartkarma Smart Scores highlight its strong value and market momentum, indicating a positive long-term outlook for the company. With a solid foundation in place and a track record of creating engaging content, Spin Master is poised to continue its success in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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