US stock futures edge lower after S&P 500 hits record high; PCE data in focus
On Friday, DA Davidson adjusted its outlook on Funko shares (NASDAQ:FNKO), reducing the price target from $16.00 to $13.00 but continuing to endorse the stock with a Buy rating. The stock, currently trading at $9.09, has experienced significant volatility with a -15.83% decline over the past week. According to InvestingPro analysis, the stock appears to be fairly valued based on its proprietary Fair Value model. The revision follows Funko’s fourth quarter earnings report for 2024, which surpassed expectations, but the company provided a forecast for 2025 that fell short of analyst predictions. The lower guidance is attributed to a 20% tariff on Chinese goods, with the potential for additional impact if retaliatory tariffs on Vietnamese goods are implemented. Despite current challenges, InvestingPro data shows analysts expect the company to return to profitability this year, with consensus forecasts pointing to earnings of $0.08 per share in 2024.
Funko’s guidance for the first quarter of 2025 was also notably lower than the consensus, which was partly blamed on shipping disruptions at the Mexican border. Despite these challenges, Funko’s international sales have been consistently increasing, and the company is adopting marketing strategies in the U.S. that have proven successful elsewhere. The company maintains a solid market position with trailing twelve-month revenue of $1.05 billion, though this represents a -7.96% year-over-year decline. InvestingPro subscribers can access 7 additional key insights about Funko’s financial health and market position.
The firm has plans in place to stimulate year-over-year sales growth in the second half of 2025. DA Davidson has revised its target price-to-earnings ratio for Funko to 18 times from the previous 23 times. The new price target is based on this updated P/E ratio and the firm’s 2026 estimated earnings per share of $0.70, which remains unchanged due to a forecasted decrease in interest expenses.
The analyst from DA Davidson highlighted that while the near-term outlook might be challenging due to tariffs and shipping issues, the company’s growth initiatives and consistent performance in international markets provide a basis for maintaining a positive long-term perspective on Funko’s stock.
In other recent news, Funko Inc . reported its fourth-quarter 2024 earnings, which exceeded expectations for both earnings per share (EPS) and revenue. The company achieved an EPS of $0.08, surpassing the forecast of $0.00, and reported revenue of $293.7 million, which was higher than the anticipated $285.41 million. Despite these positive financial results, the company’s stock experienced a 12% decline in aftermarket trading. Funko’s gross margin improved by 4.8 percentage points year-over-year, with direct-to-consumer sales accounting for 29% of gross sales. However, Funko’s full-year 2024 net sales decreased compared to 2023, totaling $1.05 billion, down from $1.1 billion. The company has projected net sales for 2025 to be between $1.05 billion and $1.102 billion, with adjusted EBITDA ranging from $80 million to $100 million. Analysts from firms like Goldman Sachs have been actively engaging with Funko’s management, discussing assumptions in the company’s guidance, including the impact of tariffs and consumer sentiment. Funko has also been working on mitigating tariff impacts and supply chain disruptions, which are ongoing challenges for the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.