Earlier today, Motley Fool Stock Advisor pick Marvel Entertainment
- The company's solid performance still didn't meet analyst expectations, as the stock is down more than 6% after the earnings release.
- Marvel's balance sheet, meanwhile, looks almost picture-perfect. All remaining debt from share repurchases has been paid and cash and investments more than tripled from last summer.
- Fools remain true believers. The professional and amateur stock-pickers following Marvel in our Motley Fool CAPS investor-intelligence database give it four out of five stars, which puts it in on par with fellow kid stocks Disney
(NYSE:DIS) and Electronic Arts(NASDAQ:ERTS) .
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$101,475 |
$84,363 |
20.3% |
|
Net Profit |
$29,087 |
$16,297 |
78.5% |
|
EPS |
$0.34 |
$0.19 |
78.9% |
|
Diluted Shares |
84,906 |
86,746 |
(2.1%) |
Get back to basics with a look at the income statement.
Margin Checkup|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
85.71% |
72.89% |
12.82 |
|
Operating Margin |
55.22% |
31.47% |
23.75 |
|
Net Margin |
28.66% |
19.32% |
9.34 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$74,228 |
$10,997 |
575% |
|
Accounts Rec. |
$36,375 |
$59,777 |
(39.1%) |
|
Inventory |
$11,505 |
$13,614 |
(15.5%) |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$2,263 |
$6,913 |
(67.3%) |
|
Long-Term Debt |
$0 |
$96,700 |
(100%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$24,981 |
$81,079 |
(69.2%) |
|
Capital Expenditures |
$2,006 |
$12,494 |
(83.9%) |
|
Free Cash Flow |
$22,975 |
$68,585 |
(66.5%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
- How did our Foolish Forecast work out?
- Go back to last year's battle royal over Marvel.
- Should you buy, sell, or hold shares of the comic book king?
Marvel is one of the best stocks ever to enter the Stock Advisor portfolio, which also includes Electronic Arts. Get a 30-day free pass to the service to find out how David and Tom Gardner have engineered a 39-point drubbing of the S&P 500 over the past five years. There's no obligation to subscribe.
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.
Fool contributor Tim Beyers owns shares of Marvel. He may buy more when The Motley Fool's disclosure policy allows. Find Tim's portfolio here and his latest blog commentary here.
