Marvel Entertainment, Inc. (MVL), one of the world's most prominent character-based entertainment companies, is scheduled to report its fiscal third quarter 2009 financial results on Tuesday, November 3, 2009. In the last four quarters, the company's actual earnings exceeded the market's consensus significantly.
Marvel previously reported net sales of $116.3 million and net income of $29.0 million, or $0.37 per diluted share, compared to net sales of $156.9 million and net income of $46.7 million, or $0.59 per diluted share, in Q2 2008.
In the last three years, the company's Q3 revenues trended up over Q2 revenues. The trend is likely to continue. In fact, the company raised the low end of its full year 2009 financial guidance for net sales, net income and diluted earnings per share as a result of stronger than anticipated operating performance in the first half of 2009. However, Q3 revenue will show a year-over-year decline.
Analysts' estimates for the quarter ending September 2009 (Q3) range from a low of $0.17 to a high of $0.33, with a consensus of $0.241. For the fiscal quarter ending September 2009, the consensus EPS forecast has increased over the past week from $0.239 to $0.241 (0.84%) and remained the same over the past month at $0.241. Of the 19 analysts making quarterly forecasts, 1 raised and none lowered their forecast. The upward revision in the forecast is attributable to increased income from licensing.
The company didn't have any outstanding borrowings under its $100 million line of credit with HSBC Bank. Marvel had no outstanding film-facility borrowings at June 30, 2009 compared to $61.9 million at March 31, 2009, reflecting strong cash receipts associated with the Iron Man and The Incredible Hulk feature films. As of September 30, 2009, Marvel is expected to have cash and cash equivalents of $85 million.
On August 31, 2009, the Walt Disney Company (NYSE:DIS) agreed to acquire Marvel Entertainment, Inc. in a stock and cash transaction. Under the terms of the agreement and based on the closing price of Disney on August 28, 2009, Marvel shareholders would receive a total of $30 per share in cash plus approximately 0.745 Disney shares for each Marvel share they own.
For the fiscal year ending December 2009, the consensus EPS forecast has increased over the past week from $1.388 to $1.389 (0.07%) and decreased over the past month from $1.393 to $1.389 (-0.29%). Of the 19 analysts making yearly forecasts, 1 raised and none lowered their forecast. The company's stock closed Thursday at $50.46, compared to the 52 week range of $22.82 and $51.86. The stock seems to set a new 52 week high soon.
