A Mixed Bag
Funko, Inc. (FNKO) shares experienced a decline following the release of their second-quarter financial results on Thursday. While the company surpassed analyst expectations in terms of earnings per share (EPS) and revenue, its outlook for the third quarter fell short of estimates.
Funko reported earnings of 10 cents per share, exceeding the anticipated loss of 14 cents. Revenue reached $247.7 million, surpassing analyst estimates by 7.21% and representing a 3.2% increase compared to the same period last year.
Newly appointed CEO Cynthia Williams attributed the company's performance to strong demand for core collectible products in international markets, particularly Europe. Additionally, the success of Pop! Yourself and Bitty Pop! lines, along with growth in the direct-to-consumer segment, contributed to the positive results.
However, Funko's outlook for the third quarter painted a less optimistic picture. The company anticipates net sales between $282 million and $297 million, falling below the estimated $319.22 million. Earnings are projected to range from 1 cent to 6 cents per share, significantly lower than the 20 cent estimate.
Following the announcement, FNKO shares experienced a 1.62% decline in after-hours trading, reaching $8.50 at the time of publication.