Funko’s (NASDAQ:FNKO) investors were given a jolt on Friday as shares fell 14% in the wake of a disappointing forecast. The company’s sales guidance for 2023 fell short of analysts’ expectations, and Funko’s Q3 sales are also predicted to be below consensus. In a move that raised eyebrows, the pop culture collectibles firm recently slashed its workforce by 12%, eliminating 180 positions. This comes alongside Funko’s second-quarter figures, where non-GAAP EPS of -$0.43 missed analyst predictions by $0.02, and revenue fell short by over $10 million.
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Despite the gloom, there were some silver linings. Indeed, net sales and adjusted EBITDA were within guidance. Furthermore, CFO Steve Nave added that they were ahead of schedule with their cost reduction plan, expecting to generate between $155M and $185M in annualized savings. An additional round of workforce reductions and cost-lowering measures aim to yield roughly $38M more in savings. Amid these struggles, Funko is focusing on reducing product lines to simplify the business.
Turning to Wall Street, analysts have a Hold consensus rating on FNKO stock based on one Buy, two Holds, and one Sell assigned in the past three months, as indicated by the graphic above.
