Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at 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 4 toys and electronics stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest 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 $1.39 billion, up 8.3% year on year. This print exceeded analysts’ expectations by 3.2%. Overall, it was a strong quarter for the company with a decent beat of analysts’ Wizards & Digital Gaming revenue estimates and a decent beat of analysts’ revenue estimates.
“Hasbro delivered another quarter of growth, highlighting the strength of our brands and Playing to Win strategy,” said Chris Cocks, Chief Executive Officer,
Hasbro scored the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 8.1% since reporting and currently trades at $81.24.
Is now the time to buy Hasbro? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: 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 $250.9 million, down 14.3% year on year, falling short of analysts’ expectations by 4.2%. However, the business still had a very strong quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 1.7% since reporting. It currently trades at $3.07.
Is now the time to buy Funko? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest Q3: 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 $107 million, down 15.2% year on year, exceeding analysts’ expectations by 2.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Bark delivered the slowest revenue growth in the group. As expected, the stock is down 18.1% since the results and currently trades at $0.65.
Read our full analysis of Bark’s results here.
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 $1.74 billion, down 5.9% year on year. This result came in 5.5% below analysts' expectations. It was a softer quarter as it also produced a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
Mattel had the weakest performance against analyst estimates among its peers. The stock is up 9.2% since reporting and currently trades at $20.54.
Read our full, actionable report on Mattel here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.