Marvel beats expectations, but profits down

Marvel Entertainment reported today that fourth-quarter profits fell 14 percent due to a one-time charge (early termination of the licensing agreement with its toy licensee, Toy Biz Worldwide Ltd.), but the company still beat analysts' expectations, as Marvel's fourth-quarter revenue grew 17 percent to $117.1 million from $100.5 million last year. According to the Associated Press, analysts had expected earnings per share of 31 cents on revenue of $112.1 million.

For all of 2005, Marvel posted net income of $102.8 million, or 97 cents per share, down from $124.9 million, or $1.10 per share, in 2004. Revenue fell 24 percent to $390.5 million from $513.5 million. However, Marvel raised expectations for 2006, raising its revenue forecast to $320 million to $350 million, from the previous $270 million to $300 million, and lifted its earnings-per-share projection to 44 cents to 55 cents per share from 37 to 52 cents.