Benzinga | Nov 4, 2020 10:16AM EST

Earnings Outlook For Funko

Funko (NASDAQ: FNKO) unveils its next round of earnings this Thursday, November 05. Get prepared with Benzinga's ultimate preview for Funko's Q3 earnings.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Funko management projections, analysts predict EPS of $0.1 on revenue of $169.33 million. Funko earnings in the same period a year ago was $0.38 per share. Quarterly sales came in at $223.31 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be down 73.68%. Sales would have fallen 24.17% from the same quarter last year. Funko's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.37 -0.07 0.16 0.32EPS Actual -0.20 -0.04 0.18 0.38Revenue Estimate 76.71 M 138.61 M 213.75 M 220.44 MRevenue Actual 98.10 M 136.70 M 213.55 M 223.31 M

Stock Performance

Over the last 52-week period, shares are down 56.18%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Funko is scheduled to hold the call at 16:30:00 ET and can be accessed here.