Q4 Earnings Highlights: Hasbro (NASDAQ:HAS) Vs The Rest Of The Toys and Electronics Stocks
Looking back on toys and electronics stocks' Q4 earnings, we examine this quarter's best and worst performers, including Hasbro (NASDAQ:HAS) 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 7 toys and electronics stocks we track reported a weak Q4; on average, revenues missed analyst consensus estimates by 1%, while next quarter's revenue guidance was 3.5% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. The beginning of 2024 saw mixed inflation data, however, leading to more volatile stock performance, and toys and electronics stocks have held roughly steady amidst all this, with share prices up 0.7% on average since the previous earnings results.
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 $1.29 billion, down 23.2% year on year, falling short of analyst expectations by 4.9%. It was a weak quarter for the company, with a miss of analysts' revenue estimates as its consumer products and entertainment segments declined 25% and 49% year on year. Its Wizards of the Coast and Digital Gaming segment was a silver lining (7% growth) but not enough to move the needle on company-level performance. The company's full-year 2024 EBITDA guidance also missed Wall Street's forecast.
“Guided by our strategy of “Fewer, Bigger, Better,” we had important wins across both toys and games while making progress in our transformation during a challenging 2023.
Hasbro delivered the slowest revenue growth of the whole group. The stock is up 6.9% since the results and currently trades at $54.84.
Read our full report on Hasbro here, it's free.
Best Q4: Sonos (NASDAQ:SONO)
A pioneer in connected home audio systems, Sonos (NASDAQ:SONO) offers a range of premium wireless speakers and sound systems.
Sonos reported revenues of $612.9 million, down 8.9% year on year, outperforming analyst expectations by 4.4%. It was a solid quarter for the company, with an impressive beat of analysts' earnings estimates.
Sonos achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 3% since the results and currently trades at $16.96.
Is now the time to buy Sonos? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $295.4 million, down 8% year on year, falling short of analyst expectations by 9.4%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.
GoPro had the weakest performance against analyst estimates in the group. The stock is down 37.9% since the results and currently trades at $1.8.
Read our full analysis of GoPro'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 $125.1 million, down 6.9% year on year, surpassing analyst expectations by 1.4%. It was a mixed quarter for the company, with revenue exceeding analysts' estimates, driven by better-than-expected Direct-to-Consumer sales. On the other hand, its operating margin missed analysts' expectations.
The stock is up 14.4% since the results and currently trades at $1.05.
Read our full, actionable report on Bark here, it's free.
Snap One (NASDAQ:SNPO)
Founded to revolutionize the way people interact with their homes and offices, Snap One (NASDAQ:SNPO) is a provider of smart living technology, offering innovative home automation, audio-video, and security products.
Snap One reported revenues of $264.4 million, down 1.4% year on year, falling short of analyst expectations by 0.8%. It was a mixed quarter for the company, with full-year revenue guidance missing analysts' expectations. On the other hand, adjusted EBITDA and EPS exceeded expectations during the quarter.
Snap One had the weakest full-year guidance update among its peers. The stock is up 39.8% since the results and currently trades at $10.51.
Read our full, actionable report on Snap One here, it's free.
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