Pop culture collectibles manufacturer Funko (NASDAQ:FNKO) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
Funko beat analysts’ revenue expectations by 7.2% last quarter, reporting revenues of $247.7 million, up 3.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ earnings and EBITDA estimates.
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 7.5% year on year to $289.6 million, improving from the 14.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.
The majority of analysts covering the company have 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 twice over the last two years.
Looking at Funko’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Hasbro’s revenues decreased 14.8% year on year, missing analysts’ expectations by 1.3%, and Mattel reported a revenue decline of 3.9%, in line with consensus estimates. Hasbro traded down 5.5% following the results while Mattel was up 4.6%.
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 3.3% on average over the last month. Funko is down 12.2% during the same time and is heading into earnings with an average analyst price target of $11 (compared to the current share price of $11).
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