Funko (FNKO) to Report Q3 Earnings: Here's What to Expect
Funko, Inc. FNKO is set to report third-quarter 2023 earnings on Nov 2, after market close. The bottom line of this lifestyle pop culture products company is expected to decrease year over year. The Zacks Consensus Estimate of a loss of 8 cents per share for the third quarter has been stable in the past 30 days. The figure compares unfavorably with earnings of 28 cents per share in the year-ago period.
The consensus estimate for quarterly revenues is $294.3 million, indicating a decrease of 19.5% from the prior-year reported figure.
The company has a trailing four-quarter earnings surprise of 56.9%, on average. In the last reported quarter, the company’s bottom line missed the Zacks Consensus Estimate by a margin of 13.2%.
Key Things to Note
Funko’s third-quarter results are likely to reflect the impacts of a tough operating backdrop, including inflationary pressures. In addition, currency headwinds are expected to have remained deterrents. Further, supply-chain disruptions are likely to have affected the company’s performance in the quarter to be reported.
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 for a while now.
On its last earnings call, management had projected net sales to be $280-$310 million and adjusted EBITDA to be $14-$19 million for the said quarter. It had envisioned an adjusted loss per share of three-10 cents for the third quarter. However, the company had guided sequential gross margin improvement and SG&A expenses to improve sequentially in the quarter under review.
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 third 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 -21.95% and a Zacks Rank #4 (Sell).
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:
e.l.f. Beauty ELF currently has an Earnings ESP of +0.42% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register top and bottom-line growth when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for e.l.f. Beauty’s quarterly earnings per share of 54 cents suggests an increase of 50% from the year-ago quarter’s levels.
ELF has a trailing four-quarter negative earnings surprise of 108.3%, on average. The consensus estimate for e.l.f. Beauty’s quarterly revenues is pegged at $197.3 million, indicating a rise of 61.2% from the figure reported in the prior-year quarter.
Build-A-Bear Workshop BBW currently has an Earnings ESP of +0.66% and a Zacks Rank of 1. The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings per share is pegged at 51 cents, flat year over year.
Build-A-Bear Workshop’s top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $107.6 million, which indicates an increase of 3% from the figure reported in the prior-year quarter. BBW has a trailing four-quarter earnings surprise of 21.6%, on average.
Church & Dwight Co. CHD has an Earnings ESP of +2.21% and a Zacks Rank of 3. The company is slated to witness top-line growth when it reports third-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.43 billion, which suggests growth of 8.7% from the figure reported in the prior-year quarter.
Although the consensus estimate for Church & Dwight’s quarterly earnings has moved up by a penny over the past 30 days to 68 cents per share, it suggests a decline of 10.5% from the year-ago quarter’s reported number. CHD delivered an earnings surprise of 12.1%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
e.l.f. Beauty (ELF) : Free Stock Analysis Report
Funko, Inc. (FNKO) : Free Stock Analysis Report
