Toys and Electronics Stocks Q4 Results: Benchmarking GoPro (NASDAQ:GPRO)
Looking back on toys and electronics stocks' Q4 earnings, we examine this quarter's best and worst performers, including GoPro (NASDAQ:GPRO) 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 those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and toys and electronics stocks have held roughly steady amidst all this, with share prices up 3.2% on average since the previous earnings results.
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.
"Our growth strategy led to significant retail channel sell-through increases in the fourth quarter and second half of 2023," said Nicholas Woodman, GoPro's founder and CEO.
GoPro delivered the weakest performance against analyst estimates of the whole group. The stock is down 37.9% since the results and currently trades at $1.8.
Read our full report on GoPro 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' revenue and earnings estimates. The company planned to announce an undisclosed new product line in a few months, likely building some excitement.
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.
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.
Hasbro had the slowest revenue growth in the group. The stock is up 6.9% since the results and currently trades at $54.84.
Read our full analysis of Hasbro'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 slower quarter for the company, with a miss of analysts' earnings estimates.
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.
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 $1.62 billion, up 15.6% year on year, falling short of analyst expectations by 1.1%. It was a mixed quarter for the company, with a miss of analysts' revenue estimates.
Mattel pulled off the fastest revenue growth among its peers. The stock is down 4.1% since the results and currently trades at $18.06.
Read our full, actionable report on Mattel here, it's free.
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