Funko Shares Jump On Q4 Beat, Solid FY22 Guidance

Funko Inc FNKO reported fourth-quarter FY21 sales growth of 48% year-on-year, to $336.27 million, beating the consensus of $272.49 million.
Sales in the U.S. rose 47% to $252.9 million, Europe grew 59% to $64 million, and other International sales gained 32% to $19.4 million.
The direct-to-consumer sales jumped by 74% Y/Y.
The gross margin for the quarter contracted by 330 basis points to 33.9%, reflecting higher freight expense due to pandemic-related disruptions to global supply chains.
The operating margin was 7.5%, and operating income for the quarter rose 24.9% to $25.2 million.
The company held $83.5 million in cash and equivalents as of December 31, 2021.
Adjusted EBITDA increased 17% Y/Y to $38.9 million.
Adjusted EPS of $0.38 beat the consensus of $0.24.
Outlook: Funko sees FY22 sales growth of 20% - 25% Y/Y. The company expects FY22 adjusted EPS of $1.75 - $1.91, above the consensus of $1.43.
DA Davidson analyst Linda Bolton raised Funko’s piece target to $46 from $34 and maintained a Buy rating on the shares.
Price Action: FNKO shares are trading higher by 15.7% at $20.59 in premarket on the last check Friday.

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