Funko (FNKO) to Report Q2 Earnings: Here's What to Expect
Funko, Inc. FNKO is set to report second-quarter 2023 earnings on Aug 3, after market close. The bottom line of this lifestyle pop culture products company is expected to have decreased year over year. The Zacks Consensus Estimate of a loss of 38 cents per share for the second quarter has been stable in the past 30 days. The figure shows a decline from earnings of 26 cents per share in the year-ago period.
The consensus estimate for quarterly revenues stands at $253.2 million, indicating a decrease of 19.8% from the prior-year reported figure.
The company has a trailing four-quarter earnings surprise of 49%, on average. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by a margin of 46.7%.
Key Things to Note
Funko’s second-quarter results are likely to reflect the impacts of a tough operating backdrop, including inflationary pressures. In addition, currency headwinds are expected to remain deterrents. Further, supply-chain disruptions are likely to have affected the company’s performance in the second quarter. These weaknesses, coupled with any deleverage in selling, general and administrative (SG&A) expenses, are expected to have hurt Funko’s performance in the quarter under review. The company has been witnessing higher SG&A costs owing to the increased fulfillment expenses.
On its last earnings call, management had projected net sales of $240-$260 million and adjusted EBITDA of a loss of $10 million to break even for the said quarter. However, the company had guided sequential gross margin improvement relative to the previous quarter’s adjusted gross margin and cited that SG&A expenses are likely to remain in line with the first quarter.
On the positive front, Funko has been focused on improving product categories, capacity-creation efforts and international expansion. Emphasis on direct-to-consumer channels through operational improvements is likely to have been a tailwind. These, coupled with contributions from the Loungefly brand, are expected to have provided some cushion to the company’s performance in the second quarter.
What Does the Zacks Model Unveil?
Our proven model doesn’t conclusively predict an earnings beat for Funko this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Funko, Inc. Price and EPS Surprise
Funko, Inc. price-eps-surprise | Funko, Inc. Quote
Funko has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks With Favorable Combination
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this season:
lululemon athletica LULU currently has an Earnings ESP of +0.03% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
LULU is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $2.20 billion, calling for growth of 15.9% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share is $2.52, which suggests a 14.6% increase from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
PVH Corp PVH currently has an Earnings ESP of +3.56% and a Zacks Rank of 3. PVH is likely to register top-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.20 million, suggesting 2.8% rise from the figure reported in the prior-year quarter.
The consensus mark for PVH Corp’s second-quarter earnings is pegged at $1.75 per share, suggesting 15.9% decline from earnings of $2.08 per share reported in the year-ago quarter. The consensus mark has remained unchanged in the past 30 days. PVH has a trailing four-quarter earnings surprise of 20.4%, on average.
Cinemark Holdings, Inc. CNK currently has an Earnings ESP of +24.39% and a Zacks Rank of 3. CNK is expected to register top and bottom-line growth from the year-ago quarter’s reported figures when it reports its second-quarter 2023 numbers. The Zacks Consensus Estimate for CNK’s quarterly revenues is pegged at $863.3 million, suggesting a rise of 16% from the prior-year quarter’s reported figure.
The consensus estimate for CNK’s quarterly earnings has moved down 7.7% in the past 30 days to 48 cents per share. The consensus estimate for earnings suggests 182.4% growth from the year-ago quarter’s reported number. Cinemark's delivered an earnings beat of 90% in the last reported quarter.
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lululemon athletica inc. (LULU) : Free Stock Analysis Report
PVH Corp. (PVH) : Free Stock Analysis Report
Cinemark Holdings Inc (CNK) : Free Stock Analysis Report
Funko, Inc. (FNKO) : Free Stock Analysis Report
