Pop culture collectibles manufacturer Funko (NASDAQ: FNKO) will be reporting earnings tomorrow after market hours. Here’s what investors should know.
Funko beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $293.7 million, flat year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.
Is Funko a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Funko’s revenue to decline 12% year on year to $189.8 million, improving from the 14.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.44 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Funko has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Funko’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Hasbro delivered year-on-year revenue growth of 17.1%, beating analysts’ expectations by 14.8%, and Mattel reported revenues up 2.1%, topping estimates by 4.4%. Hasbro traded up 15.9% following the results while Mattel was also up 2.9%.
Read our full analysis of Hasbro’s results here and Mattel’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.7% on average over the last month. Funko is down 12.7% during the same time and is heading into earnings with an average analyst price target of $10 (compared to the current share price of $3.92).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
