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Marvel Enterprises Issues Rosy 3rd-Quarter Outlook
Thursday October 9, 8:24 am ET
NEW YORK (Dow Jones)--Marvel Enterprises Inc. expects to surpass even the high end of its third-quarter guidance, due to building momentum in its licensing division.
The company, which publishes comic books and licenses characters such as the Hulk and Spider-Man, said apparel, toys and household goods licensing activity continued to exceed internal projections.
Marvel now expects to post third-quarter earnings of 37 cents to 41 cents a share, compared with the company's August guidance for 25 cents to 30 cents. Sales will likely total $84 million to $87 million rather than the $60 million to $65 million previously projected.
The company cautioned that the improved range is based partly on assumptions for expected fees from motion picture studios and licensees. The estimates are " based on discussions with license partners, and not actual figures at this time, " Marvel said in a press release Thursday.
Analysts are looking for Marvel to earn 25 cents a share for the third quarter, compared with 17 cents reported a year ago.
Based "solely" on the improved third-quarter forecast, Marvel also raised its guidance for the full year - for the fourth time - and now expects to earn $1.38 to $1.42 a share.
In August, the company had increased its full-year earnings estimate to $1.26 to $1.31 a share, on forecast sales of $287 million to $293 million. A company spokesman wasn't immediately available early Thursday to update Marvel's full- year revenue target.
The current First Call mean estimates are $1.33 a share for earnings and $292 million for sales. In 2002, Marvel earned 36 cents a share on sales of $299 million.
The company also said its cash balance at Sept. 30 was $203 million, up from $ 144.3 three months earlier, thanks to strong cash-collection and $15 million in proceeds from the exercise of options and warrants.
New York Stock Exchange (News - Websites) -listed shares of Marvel closed Wednesday at $24.22, more than quadruple the price a year ago.
-Pamela Tate; Dow Jones Newswires; 201-938-5400 |
