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Funko (FNKO) to Report Q4 Earnings: What's in the Cards?

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Funko, Inc. (FNKO - Free Report) is scheduled to report fourth-quarter 2021 results on Mar 3, 2022, after market close. In the last reported quarter, the company delivered an earnings surprise of 44.4%.

Trend in Estimate Revision

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 23 cents per share, indicating a decline of 20.7% from 29 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $274.3 million. The projection suggests an increase of 21.1% 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 fourth-quarter performance is likely to have benefited from solid demand across product categories, strength in third-party e-commerce as well as product development initiatives. Also, focus on geographical expansions bode well.

Emphasis on direct-to-consumer channels by means of operational improvements (in domestic site) is likely to have driven sessions transactions per user and conversion rates in the fourth quarter. During the previous quarter, DTC channels contributed 11% to total net sales. With formation of new channel partnerships, the momentum is likely to have persisted in the fourth quarter as well.

However, a rise in freight costs is likely to have hurt margins in the fourth quarter. This along with coronavirus-induced factory stoppages and supply chain disruptions is likely to have affected the company’s performance in the fourth 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 has a Zacks Rank #3. 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:

Oxford Industries, Inc. (OXM - Free Report) has an Earnings ESP of +1.10% and a Zacks Rank #2.

Shares of Oxford have gained 11.2% in the past year. OXM’s earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 96.7%.

NeoGames S.A. has an Earnings ESP of +15.79% and a Zacks Rank #3.

Shares of NeoGames have declined 25% in the past year. NGMS’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 165.8%.

PVH Corp. (PVH - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank #3.

Shares of PVH have declined 2.8% in the past three months. PVH’s earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 72.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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