Funko Shares Jump on Q2 Earnings Results

Shares of pop culture collectible producing company Funko were heading north on Thursday after reporting stellar results for the second quarter.

Funko reported a 38% jump in sales for the quarter and also raised its outlook for the remainder of 2019.

The company cited the increase in sales was due to the number of licenses it had during the quarter, including “Avengers: Endgame,” “Stranger Things” and “Toy Story 4.” The company also cited an increase in customer demand. “Avengers” branded collectibles accounted for 6% of sales during the quarter, the company said.

Shares gained as much as 11% in after-hours trading on Thursday as Wall Street read the numbers.

“Funko once again delivered very strong results in the second quarter,” Brian Mariotti, Funko’s CEO, stated. He added, “We believe these results and our continued opportunities for growth demonstrate that the world is increasingly viewing pop culture through the lens of Funko.”

For the quarter ended June 30th, Funko reported that net income jumped to $11.4 million, or 16 cents a share.
Excluding items, the company earned 25 cents per share, beating analyst expectations of 13 cents per share.
Revenue during the quarter hit $191.2 million, coming ahead of the $170 million that analysts expected, according to Refinitiv data.

Collectible figures, including Pops, Viynl and Dorbz accounted for 84% of Funko’s sales, while its apparel, plush, cereal and games accounted for the remaining 16%.

“Our strong results in the first half of 2019 have allowed us to increase our guidance for the full year,” Mariotti also said. “More importantly, the growing range of opportunities for revenue growth, international expansion and entry into new categories make us confident that our best days lie ahead, and that our fans, partners, employees and shareholders can look forward to the future.”

Looking ahead, Funko has now forecast net sales to be between $840 million and $850 million for the full year, up from its previous range of $810 million to $825 million. The company expects earnings per share to fall in a range between $1.15 and $1.22 per share, up from the $1.05 to $1.15 per share it had forecast last quarter.

Disclaimer: We have no position in Funko Inc. (NASDAQ: FNKO) and have not been compensated for this article.