Shares of Funko (NASDAQ: FNKO) were hammered in morning trading on Friday after the pop culture lifestyle brand reported that its net income fell 39.3% year-over-year to $11.1 million in Q3. Adjusted earnings came in at $0.28 per share versus $0.39 in the same quarter last year widely missing Street estimates of $0.50.
The company’s net sales grew 36.6% year-over-year to $365.6 million, narrowly beating analysts’ estimates by $45.98 million.
Funko’s FY22 forecast was also disappointing with net sales expected to be between $1.29 billion and $1.33 billion suggesting little or no improvement compared to sales of $1.03 billion in FY21.
Gross margins are expected to decline sequentially in FY22 as a result of “margin seasonality and ongoing inventory management”.
Adjusted EPS guidance is projected to be in the range of $0.85 to $0.95, falling short of the Street consensus of $1.91.
