Should Investors Buy the Dip in Funko Stock?
Funko's (NASDAQ: FNKO) stock is definitely in a funk. Shares of the pop culture collectibles maker sank 59% to a two-year low on Nov. 4 after the company posted its third-quarter report. Revenue rose 37% year over year to $365.6 million, beating analysts' estimates by $46 million. However, its adjusted net income fell 28% to $15.1 million, or $0.28 per share, and missed the consensus forecast by $0.22.
Funko's outlook also disappointed investors. For the full year, the company expects revenue to rise 25%-29% and adjusted EPS to decline 33%-40%. Wall Street had expected revenue to increase 29% and EPS to increase 35%. Funko's sales are still rising, but its steep profit declines raised bright red flags. Is this dip worth buying, or is it a falling knife that investors should avoid?
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Source Fool.com
