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Here's What You Should Note Ahead of Funko (FNKO) Q1 Earnings

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Funko, Inc. (FNKO - Free Report) is scheduled to release first-quarter 2019 results on May 2. This pop culture consumer products company has a splendid earnings surprise record and it has significantly outperformed the Zacks Consensus Estimate in the trailing four quarters.

Let’s see how things are placed ahead of the upcoming quarterly results.

Funko, Inc. Price and EPS Surprise



Funko, Inc. Price and EPS Surprise | Funko, Inc. Quote

What to Expect?

The Zacks Consensus Estimate has remained stable in the past 30 days at 9 cents, which indicates a substantial rise from the year-ago quarter’s reported figure. Further, the consensus mark for revenues is $159 million compared with $137 million reported in the year-ago period.

Factors Impacting Results

Funko’s first-quarter sales are likely to show strength on high domestic and international demand. Further, the company’s robust acquisitions are set to contribute to the top line. Funko is focused on product diversification to expand the pop culture experience. To this end, the company’s latest buyout of Forrest-Pruzan Creative will help it expand in the board game category. This is also likely to have an impact on the first-quarter performance.

Apart from this, Funko is poised to gain from its customer diversification strategy. Also, growing digital sales should act as a driver. While robust demand bodes well for Funko, margins may appear to be under pressure due to additional costs associated with fulfilling the stronger-than-anticipated demand in the quarter under review. Also, first-quarter sales growth is expected to be somewhat hit by tough year-over-year comparisons.

What the Zacks Model Unveils

Our proven model doesn’t show that Funkois likely to beat bottom-line estimates this quarter.  For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Funko has an Earnings ESP of 0.00% and Zacks Rank #5 (Strong Sell). Notably, we caution against Zacks Rank #4 (Sell) or 5 stocks going into earnings announcement.   

Stocks Poised to Beat Earnings Estimates

Estee Lauder (EL - Free Report) has an Earnings ESP of +0.77% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here

Church & Dwight (CHD - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank #2.

Hanesbrands (HBI - Free Report) has an Earnings ESP of +3.18% and a Zacks Rank #3.

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