Funko Stock Climbs On Better-Than-Expected Q4 Results

Funko FNKO shares are climbing after the company reported its fourth-quarter financial results after the bell. Here's a look at the highlights. 

The Details: Funko reported quarterly earnings of 1 cent per share which beat the analyst consensus estimate of losses of 4 cents per share.

Quarterly sales came in at $291.2 million, beating the analyst consensus estimate of $281.961 million by 3.28%. Inventory levels were lowered to $119.5 million on Dec. 31, 2023, versus $246.4 million from the prior year.

The company announced Steve Nave, Funko’s CFO and COO, will resign effective March 15. Yves LePendeven, the company’s deputy CFO, will serve as acting CFO as of the same date.

“In 2023, we implemented a comprehensive plan to significantly reduce costs, improve operational efficiencies and focus on our core product offerings,” said Michael Lunsford, Funko’s Interim CEO.

“The major elements of that plan, which addressed the company’s inventory issues, unprofitable product lines and SKUs, workforce size, and several other factors, were successfully completed, and we believe our company is now on a significantly more solid foundation upon which we intend to build and grow,” Lunsford said.

Outlook: Funko sees first-quarter net sales of between $214 million and $227 million and fiscal year 2024 net sales between $1.047 billion and $1.103 billion.

FNKO Price Action: According to Benzinga Pro, Funko shares are trading up 12.58% after-hours at $7.25 at the time of publication Thursday.

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Photo: Gerd Altmann from Pixabay