Shares of pop culture collectible maker Funko jumped as much as 11% after the closing bell Thursday after the company posted a 38% increase in sales and raised its outlook for the rest of 2019.
“Funko once again delivered very strong results in the second quarter,” Brian Mariotti, Funko’s CEO, said in a statement “We believe these results and our continued opportunities for growth demonstrate that the world is increasingly viewing pop culture through the lens of Funko.”
In the quarter ended June 30, the company said that net income in the second quarter rose to $11.4 million, or 16 cents per share, from $300,000, breaking even on a per share basis.
Excluding items, the company earned 25 cents per share, beating analyst expectations of 13 cents per share.
The company’s revenue rose 38% to $191.2 million, beating analyst expectations of around $170 million, according to data from Refinitiv.
Funko said the increase was due to the number of licenses it had during the quarter, including “Avengers: Endgame,” “Fortnite” and “Toy Story 4,” as well as strong demand from customers.
“Avengers” branded collectibles accounted for 6% of sales during the quarter, the company said. In comparison, evergreen properties, ones not tied to a movie or game release, accounted for 46% of sales.
Collectible figures, including Pops, Viynl and Dorbz made up 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 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.”
The company now expects its 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. It also 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.
Funko’s stock was most recently trading up around 4%.
Funko doesn’t expect to be hit hard by tariffs proposed on Chinese products. The company said it would only take a small increase to offset the potential profit impact. However, the company does not currently have plans to raise prices.
At the end of 2018, 50% of Funko’s manufacturing was outside of China. By the end of this year, the percentage is expected to rise to 70%. Funko makes the majority of its goods in Vietnam.
[“source=cnbc”]
