On May 4, Marvel Entertainment (NYSE:MVL) released Q1 2006 earnings for the period ended March 31.

  • Publishing and toy sales increased, but total revenue was weighed down by less licensing revenue than in the year-ago period (as expected).
  • There was a shift from licensing and franchising to manufacturing and merchandising in the toy unit, which had an impact on operating margins.
  • Marvel's switch to making its own movies will mean more income, but it carries an increased risk if the movie flops.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q1 2006

Q1 2005

Change

Sales

$77,450

$90,058

$104,144

(13.5%)

Net Profit

--

$17,509

$27,721

(36.8%)

EPS

$0.12

$0.19

$0.25

(24%)



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

Margin Checkup

Q1 2006

Q1 2005

Change

Gross Margin

73.48%

88.19%

(14.71)

Op. Margin

35.55%

46.05%

(10.49)

Net Margin

19.44%

26.62%

(7.18)



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2006

Q1 2005

Change

Cash+ ST Invest.*

$22,036

$243,477

(90.9%)

Inventory

$15,237

$7,453

104.4%

Accounts Rec.

$56,809

$66,614

(14.7%)

*Does not include restricted cash

Liabilities

Q1 2006

Q1 2005

Change

Long-Term Debt

$0

$0

--

Accounts Pay.

$3,955

$4,143

(4.5%)



Learn the ways of the balance sheet.

Cash Flow Highlights

No cash flow statement provided. Boo!

Find out why Fools always follow the money.

Related Companies:

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

Related Foolishness:

Hasbro, Marvel, and Time Warner are Stock Advisor recommendations. Mattel is a Hidden Gems and Inside Value pick. Check out our entire suite of newsletters by clicking here.

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.

At the time of publication, Jim Mueller had no position in any company mentioned. Fool rules are here.