Dell falls as soft current quarter guide offsets Q2 beat, full-year outlook lift
Today, Funko, Inc. (NASDAQ:FNKO), a pop culture consumer products company, announced a correction to its full-year 2025 net sales guidance, amid a challenging period that has seen its stock decline by 23% in the past week. According to InvestingPro analysis, the company appears undervalued at its current price of $8.97. The company clarified that the sales are expected to range from $1.05 billion to $1.082 billion, building on its current revenue base of $1.05 billion. This update aligns with the figures provided during the earnings call and in the earnings release on Sunday, March 6, 2025.
The Everett, Washington-based company, known for its diverse portfolio of licensed and proprietary products, originally shared its financial outlook earlier last week. The corrected guidance suggests a continued focus on growth and market expansion, with InvestingPro data showing analysts expect the company to return to profitability this year. The company maintains a healthy gross profit margin of 41.4%, despite recent challenges.
In its regulatory filing, Funko also reiterated several forward-looking statements, cautioning that actual results might differ due to various risks and uncertainties. These include challenges in executing business strategies, managing inventory growth, maintaining licensing agreements, and adapting to economic shifts and retail market changes. The company also highlighted its reliance on third-party content development, the popularity of its products, intellectual property rights management, and the impact of counterfeit goods.
Further risks mentioned involve maintaining corporate culture, third-party manufacturing dependencies, climate change, international operations, tax law changes, and the integration of acquisitions or investments. The company also underscored the potential risks associated with its e-commerce business, digital asset payments, technology implementation, debt management, and data security.
Funko’s management stressed that they are not obligated to update forward-looking statements in the future, even if circumstances change. These cautionary notes serve as a reminder of the inherent uncertainties in business projections.
This announcement is based on a press release statement and is intended to provide investors with the latest factual information on Funko’s financial outlook. Analyst price targets for the stock range from $7 to $13, with the next earnings report expected on May 1, 2025. For deeper insights into Funko’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Funko reported its fourth-quarter 2024 earnings, surpassing expectations with an earnings per share (EPS) of $0.08 compared to a forecast of $0.00, and revenue of $293.7 million, exceeding the expected $285.41 million. Despite these positive results, the company forecasted lower-than-expected guidance for 2025, partly due to a 20% tariff on Chinese goods and potential additional tariffs on Vietnamese goods. DA Davidson subsequently revised its price target for Funko from $16.00 to $13.00, maintaining a Buy rating on the stock. The firm cited the company’s growth initiatives and strong international sales as reasons for its positive long-term outlook. Funko’s guidance for the first quarter of 2025 was also lower than consensus estimates, attributed to shipping disruptions at the Mexican border. The company plans to stimulate year-over-year sales growth in the second half of 2025. Additionally, Funko’s gross margin improved significantly, rising 4.8 percentage points year-over-year, and its direct-to-consumer sales accounted for 29% of gross sales. Despite challenges, Funko remains optimistic about future growth, with strategic initiatives expected to take effect in the latter half of the year.
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