Spin Master (TSE:TOY) Releases Quarterly Earnings Results

Spin Master (TSE:TOY) posted its quarterly earnings results on Thursday. The company reported C$0.11 EPS for the quarter, FiscalAI reports. Spin Master had a negative return on equity of 6.74% and a negative net margin of 4.01%.The company had revenue of C$620.03 million during the quarter.

Here are the key takeaways from Spin Master’s conference call:

• Q2 results exceeded expectations, with revenue up 9% and adjusted EBITDA up 80%, driven by strong core toy brands, new product launches, improved gross profit, and lower-timed marketing expenses.
• Spin Master reiterated its 2026 outlook for stable to low-single-digit revenue growth and mid- to high-single-digit adjusted EBITDA growth. Management expects the PAW Patrol: The Dino Movie, new products, and second-half entertainment and digital initiatives to support performance.
• Approximately $40 million of Q3 toy orders were pulled into Q2, so Q3 revenue is expected to be generally stable and less favorable sequentially; more domestic replenishment could shift a larger portion of sales into Q4.
• Early retailer and product reads for the PAW Patrol movie line are positive, with shelf space at or above prior movie launches and inventory positioned to support potential demand. The movie is expected to benefit the toy, entertainment, and digital-games businesses.
• Melissa & Doug revenue declined as expected against a difficult prior-year comparison, while proposed higher tariffs and elevated input costs are expected to add roughly $15 million of second-half costs; the company plans to absorb these costs rather than raise prices.

Spin Master Stock Down 1.4%

TSE:TOY opened at C$20.58 on Friday. Spin Master has a one year low of C$17.13 and a one year high of C$24.13. The company has a debt-to-equity ratio of 30.48, a current ratio of 1.09 and a quick ratio of 2.06. The company has a market cap of C$2.07 billion, a PE ratio of -13.36, a P/E/G ratio of 0.57 and a beta of 0.70. The firm’s 50 day simple moving average is C$20.25 and its 200 day simple moving average is C$19.34.

Spin Master Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, July 10th. Investors of record on Friday, July 10th were given a dividend of $0.12 per share. The ex-dividend date was Friday, June 26th. This represents a $0.48 annualized dividend and a yield of 2.3%. Spin Master’s dividend payout ratio (DPR) is currently -22.58%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Jefferies Financial Group lifted their target price on Spin Master from C$23.00 to C$26.00 and gave the company a “buy” rating in a research report on Friday, May 1st. TD raised their price target on shares of Spin Master from C$26.00 to C$27.00 and gave the company a “buy” rating in a research note on Friday, July 3rd. Six research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of C$27.20.

About Spin Master

Spin Master Corp. (TSX:TOY) is a leading global children’s entertainment company, creating exceptional play experiences across its three creative centres: Toys, Entertainment and Digital Games. With worldwide toy distribution, Spin Master is best known for award-winning brands including PAW Patrol ®, Melissa & Doug ®, Bakugan ® and Rubik’s ® Cube, and is the global toy licensee for other iconic properties. Through its in-house entertainment studio, the company creates and produces captivating multiplatform content including powerhouse preschool franchise PAW Patrol, along with other original shows, short-form series and feature films.