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Factors Setting the Tone for Funko's (FNKO) Q1 Earnings
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Funko, Inc. (FNKO - Free Report) is scheduled to report first-quarter 2022 results on May 5, 2022, after market close. In the last reported quarter, the company delivered an earnings surprise of 65.2%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter earnings is pegged at 20 cents per share, indicating a decline of 16.7% from 24 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $271.9 million. The projection suggests an increase of 43.8% from the year-ago quarter’s reported figure.
Let's take a look at how things have shaped up in the quarter.
Factors to Note
Funko’s first-quarter performance is likely to have benefited from solid demand across product categories, capacity creation efforts, diversification of manufacturing footprint and international expansion efforts.
Solid contributions from the Loungefly brand are likely to have boosted the company’s first-quarter top line. During the previous quarter, the brand reported solid growth across its retail partners and DTC channels, particularly in the U.S. and European markets. Also, it stated that the average selling price for the brand increased by double digits. Given the emphasis on higher value product offerings backed by increased demand from independent specialty and online retailers, the momentum is likely to have continued in the first quarter.
Emphasis on direct-to-consumer channels through operational improvements is likely to have boosted the company’s performance in the first quarter. During the previous quarter, DTC channels rose 74% year over year and contributed 11% to total net sales. With increased focus on expanded product offerings, greater use of exclusives and technology enhancements, the momentum is likely to have continued in the first quarter as well.
However, supply chain disruptions are likely to have affected the company’s performance in the first quarter. This and a rise in freight costs are likely to have hurt margins in the to-be-reported quarter.
What Our Model Says
Our proven model does not 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.
Earnings ESP: Funko has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat.
Golden Entertainment, Inc. (GDEN - Free Report) has an Earnings ESP of +7.72% and a Zacks Rank #2.
Shares of Golden Entertainment have gained 43.3% in the past year. GDEN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 204.7%.
Callaway Golf Company has an Earnings ESP of +7.22% and a Zacks Rank #3.
Shares of Callaway have declined 24.7% in the past year. ELY’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 1,047.2%.
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of +9.50% and a Zacks Rank #3.
Shares of Penn National have declined 17.7% in the past three months. PENN’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 6.9%.
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Factors Setting the Tone for Funko's (FNKO) Q1 Earnings
Funko, Inc. (FNKO - Free Report) is scheduled to report first-quarter 2022 results on May 5, 2022, after market close. In the last reported quarter, the company delivered an earnings surprise of 65.2%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for first-quarter earnings is pegged at 20 cents per share, indicating a decline of 16.7% from 24 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $271.9 million. The projection suggests an increase of 43.8% from the year-ago quarter’s reported figure.
Funko, Inc. Price and EPS Surprise
Funko, Inc. price-eps-surprise | Funko, Inc. Quote
Let's take a look at how things have shaped up in the quarter.
Factors to Note
Funko’s first-quarter performance is likely to have benefited from solid demand across product categories, capacity creation efforts, diversification of manufacturing footprint and international expansion efforts.
Solid contributions from the Loungefly brand are likely to have boosted the company’s first-quarter top line. During the previous quarter, the brand reported solid growth across its retail partners and DTC channels, particularly in the U.S. and European markets. Also, it stated that the average selling price for the brand increased by double digits. Given the emphasis on higher value product offerings backed by increased demand from independent specialty and online retailers, the momentum is likely to have continued in the first quarter.
Emphasis on direct-to-consumer channels through operational improvements is likely to have boosted the company’s performance in the first quarter. During the previous quarter, DTC channels rose 74% year over year and contributed 11% to total net sales. With increased focus on expanded product offerings, greater use of exclusives and technology enhancements, the momentum is likely to have continued in the first quarter as well.
However, supply chain disruptions are likely to have affected the company’s performance in the first quarter. This and a rise in freight costs are likely to have hurt margins in the to-be-reported quarter.
What Our Model Says
Our proven model does not 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.
Earnings ESP: Funko has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat.
Golden Entertainment, Inc. (GDEN - Free Report) has an Earnings ESP of +7.72% and a Zacks Rank #2.
Shares of Golden Entertainment have gained 43.3% in the past year. GDEN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 204.7%.
Callaway Golf Company has an Earnings ESP of +7.22% and a Zacks Rank #3.
Shares of Callaway have declined 24.7% in the past year. ELY’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 1,047.2%.
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of +9.50% and a Zacks Rank #3.
Shares of Penn National have declined 17.7% in the past three months. PENN’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 6.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.