Pop culture collectibles manufacturer Funko (NASDAQ: FNKO) will be announcing earnings results this Thursday afternoon. Here’s what to look for.
Funko beat analysts’ revenue expectations last quarter, reporting revenues of $200.9 million, up 5.3% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Funko a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Funko’s revenue to grow 3.5% year on year, a reversal from the 21.9% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Funko rarely misses Wall Street’s revenue estimates.
Looking at Funko’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Hasbro delivered year-on-year revenue growth of 16.2%, beating analysts’ expectations by 6.6%, and Mattel reported revenues up 10.5%, topping estimates by 2.4%. Hasbro traded up 9.1% following the results.
Read our full analysis of Hasbro’s results here and Mattel’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Funko is up 3.8% during the same time and is heading into earnings with an average analyst price target of $6.50 (compared to the current share price of $5.75).
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