Marvel's Daring Quarter: Fool by Numbers

On Monday, Motley Fool Stock Advisor selection Marvel Entertainment (NYSE: MVL  ) released Q2 2006 earnings for the period ended June 30.

  • Both sales and earnings handily beat estimates, though EPS benefited from a massive $163 million stock buyback executed during the quarter.
  • Marvel also slightly raised earnings guidance to $0.50 to $0.60 per share for 2006, from $0.46 to $0.57. Thank the buybacks and the lower effective tax rate.
  • The comic-book king is on track with new flicks. Three releases are planned for 2007, including a sequel to Fantastic Four.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$80,490

$84,363

$88,140

(4.3%)

Net Profit

--

$16,297

$25,787

(36.8%)

EPS

$0.11

$0.19

$0.24

(20.8%)

Diluted Shares

--

86,746

109,428

(20.7%)



Get back to basics with a look at the income statement.

Margin Checkup

Q2 2006

Q2 2005

Change*

Gross Margin

72.89%

87.37%

(14.48)

Operating Margin

31.47%

48.88%

(17.41)

Net Margin

19.32%

29.26%

(9.94)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$10,997

$105,759

(89.6%)

Accounts Rec.

$59,777

$63,535

(5.9%)

Inventory

$13,614

$8,053

69.1%



Liabilities

Q2 2006

Q2 2005

Change

Accounts Payable

$6,913

$25,101

(72.5%)

Long-Term Debt

$124,700

$0

N/A



Learn the ways of the balance sheet.

Cash Flow Checkup

No cash flow statement provided. (Whatever.)

Find out why Fools always follow the money.

Related companies:

  • Hasbro (NYSE: HAS  )
  • Mattel (NYSE: MAT  )
  • Time Warner (NYSE: TWX  )

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Time Warner and Hasbro are Stock Advisor picks as well. Ask for us an all-access pass to Stock Advisor and you'll get a backstage look at all of the stocks that are helping David and Tom Gardner beat the S&P 500 by more than 35% as of this writing. It's free for 30 days.

Fool contributorTim Beyersdidn't own shares in any of the companies mentioned in this story at the time of publication. You can find out which stocks he owns by checking Tim's Foolprofile. Mattel is anInside Valuerecommendation. The Motley Fool has an ironcladdisclosure policy.


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