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Q1 Earnings Highlights: GoPro (NASDAQ:GPRO) Vs The Rest Of The Toys and Electronics Stocks


Petr Huřťák /
2024/07/02 3:45 am EDT

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how GoPro (NASDAQ:GPRO) and the rest of the toys and electronics stocks fared in Q1.

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 6 toys and electronics stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 0.8%. while next quarter's revenue guidance was 3.3% 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. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and while some of the toys and electronics stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.1% on average since the previous earnings results.

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 $155.5 million, down 11% year on year, topping analysts' expectations by 6.1%. It was a decent quarter for the company, with revenue and adjusted EBITDA exceeding expectations.

"GoPro exceeded our revenue target in Q1, and we are making progress on our multi-year TAM expansion strategy, but it is taking more time than we anticipated," said Nicholas Woodman, GoPro's founder and CEO.

GoPro Total Revenue

GoPro scored the biggest analyst estimates beat of the whole group. The stock is down 23.7% since the results and currently trades at $1.4.

Read our full report on GoPro here, it's free.

Best Q1: 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 $757.3 million, down 24.3% year on year, outperforming analysts' expectations by 2.2%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.

Hasbro Total Revenue

Hasbro had the slowest revenue growth among its peers. The stock is down 1.5% since the results and currently trades at $57.25.

Is now the time to buy Hasbro? Access our full analysis of the earnings results here, it's free.

Weakest Q1: 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 $121.5 million, down 3.6% year on year, falling short of analysts' expectations by 0.8%. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts' expectations.

Bark had the weakest full-year guidance update in the group. The stock is up 21.1% since the results and currently trades at $1.72.

Read our full analysis of Bark's results here.

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 $252.7 million, down 16.9% year on year, surpassing analysts' expectations by 2.1%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is down 18.8% since the results and currently trades at $14.28.

Read our full, actionable report on Sonos here, it's free.

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 $215.7 million, down 14.4% year on year, falling short of analysts' expectations by 2.1%. It was a solid quarter for the company, with an impressive beat of analysts' earnings estimates.

Funko delivered the highest full-year guidance raise among its peers. The stock is up 35.7% since the results and currently trades at $9.28.

Read our full, actionable report on Funko here, it's free.

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