Q2 Earnings Highlights: Funko (NASDAQ:FNKO) Vs The Rest Of The Toys and Electronics Stocks
As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the toys and electronics industry, including Funko (NASDAQ:FNKO) and its peers.
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 6 toys and electronics stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.9% while next quarter’s revenue guidance was 4% below.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. Luckily, toys and electronics stocks have performed well with share prices up 14.2% on average since the latest earnings results.
Funko (NASDAQ:FNKO)
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 $247.7 million, up 3.2% year on year. This print exceeded analysts’ expectations by 7.2%. Overall, it was a solid quarter for the company with an impressive beat of analysts’ earnings estimates.
“For the 2024 second quarter, net sales, gross margin and adjusted EBITDA were all above our expectations,” said Cynthia Williams, Funko’s recently named Chief Executive Officer.
Funko achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 19.8% since reporting and currently trades at $10.36.
Is now the time to buy Funko? Access our full analysis of the earnings results here, it’s free.
Best Q2: Hasbro (NASDAQ:HAS)
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 $995.3 million, down 17.7% year on year, outperforming analysts’ expectations by 5.5%. It was an exceptional quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 15.2% since reporting. It currently trades at $68.52.
Is now the time to buy Hasbro? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: Mattel (NASDAQ:MAT)
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 $1.08 billion, flat year on year, falling short of analysts’ expectations by 1.8%. It was a mixed quarter for the company with a decent beat of analysts’ earnings estimates.
Mattel had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 12.4% since the results and currently trades at $19.40.
Read our full analysis of Mattel’s results here.
Bark (NYSE:BARK)
Making a name for itself with the BarkBox, Bark (NYSE:BARK) specializes in subscription-based, personalized pet products.
Bark reported revenues of $116.2 million, down 3.6% year on year, surpassing analysts’ expectations by 1.7%. Zooming out, it was an ok quarter for the company with a decent beat of analysts’ earnings estimates.
Bark had the weakest full-year guidance update among its peers. The stock is up 36.6% since reporting and currently trades at $1.79.
Read our full, actionable report on Bark here, it’s free.
GoPro (NASDAQ:GPRO)
Known for sponsoring extreme athletes, GoPro (NASDAQ:GPRO) is a camera company known for its POV videos and editing software.
GoPro reported revenues of $186.2 million, down 22.7% year on year, surpassing analysts’ expectations by 9.5%. Revenue aside, it was a good quarter for the company with a decent beat of analysts’ cameras sold estimates.
GoPro delivered the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $1.32.
Read our full, actionable report on GoPro here, it’s free.
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