Spin Master (TOY) stock gallops 13% after revenue report: Buy alert?

Highlights 

• Spin Master Corp (TSX: TOY), a popular toy and gaming company, gained nearly 13 per cent following the announcement of its preliminary revenue and sales figures on Tuesday, February 1.

• Spin Master is known globally for its innovative toys, entertainment franchises and online games offerings.
• The Canadian entertainment company’s total revenue was up 26.5 per cent year-over-year (YoY) in Q4 FY2021.

Spin Master Corp (TSX: TOY), a popular toy and gaming company, gained nearly 13 per cent  following the announcement of its preliminary revenue and sales figures on Tuesday, February 1.

Spin Master is known globally for its innovative toys, entertainment franchises and online games offerings. The Toronto-headquartered company operates under popular brands like PAW Patrol®, Air Hogs®, Toca Boca®, etc.

Let us get to know more about its revenue scores for the fourth quarter of fiscal 2021.

Spin Master (TSX: TOY) saw total revenue grow 26.5 per cent YoY in Q4

The Canadian entertainment company, which has a return on equity (ROE) of 18.91 per cent, posted a total revenue of US$ 620.5 million in Q4 FY2021, indicating a year-over-year (YoY) increase of 26.5 per cent.

Its sales from Activities, Games & Puzzles and Plush segment were up by 18.7 per cent YoY to US$ 206.5 million in the latest quarter, reported its Preschool and Dolls & Interactive sales rose 25.8 per cent YoY to US$ 251.8 million.

Spin Master’s Wheels & Actions sales were up 19.7 per cent YoY to US$ 146.1 million in the fourth quarter of FY2021, and its outdoor sales were up 48.1 per cent YoY to US$ 23.1 million.

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The company also recorded US$ 28.5 million as entertainment and licensing revenue in Q4 FY2021, reflecting a YoY surge of 16.3 per cent.

Its digital games revenue soared 57.2 per cent YoY to US$ 50 million this quarter.

 Image source: © 2022 Kalkine Media®  

Spin Master stock performance

Spin Master stock has increased by about 80 per cent in the past one year.

The toy stock closed at C$ 49.23 apiece on Tuesday, almost 93 per cent up from its 52-week low of C$ 25.54 on February 17, 2021.

Bottomline

Spin Master is set to release its full financial results for the fourth quarter of fiscal 2021 on February 28.

The company has said that it considers these positive revenue figures as “very strong revenue growth” and expects its adjusted EBITDA margin to be consistent with guidance, which was announced on November 4 last year.

Also read: Top 5 TSX growth stocks to watch in February