Earnings Results: Funko stock cut in half as earnings shrink and holiday forecast calls for no growth

by | Nov 4, 2022 | Stock Market

A figure previously provided for Funko’s relocation costs was inaccurate. This story has been updated. Funko Inc. shares are on track to lose half their value Friday, after the company known for its Pop line of collectible figurines detailed a surprising earnings decline and slashed its annual forecast ahead of the holiday season.

Funko
FNKO,
-54.10%
reported that third-quarter profit declined to $9.63 million, or 19 cents a share, from 28 cents a share a year ago. After adjusting for stock compensation and more — including more than $1 million in costs related to relocating employees and inventory to a new facility in Arizona — Funko reported earnings of 28 cents a share, down from 39 cents a share on an adjusted basis a year ago. Revenue rose more than expected, to $365.6 million from $267.7 million. Analysts on average expected adjusted earnings of 50 cents a share on sales of $319.6 million, according to FactSet. Funko’s sales beat in the third quarter made executives’ decision to decrease their annual sales forecast ahead of the holiday season even more worrisome. Funko management had guided for 2022 net sales of $1.3 to $1.35 billion, but brought that down to a range of $1.29 billion to $1.33 billion Thursday. With $989.67 million already in the books for the year, the reduced annual guidance suggests Funko will bring in $300 million to $340 million, roughly even at the top of the range with last year’s fourth quarter, which produced $336 million in net sales. Funko’s sales grew 36.6% year-over-yea …

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