Via blogs.marketwatch.com/greenberg:
On Marvel's (mvl) earnings call today, the company hinted at what I wrote back in June and has since become apparent: That sales of Hasbro's (has) Spider-Man toys have been a disappointment. According to Marvel CFO Ken West, "While Hasbro has not been disappointed with licensed Marvel toy sales to date, we have reduced our forecast for the second half of 2007 to the low end of their forecasts to reflect a possibility of lower reorders..." Hasbro, you may recall, paid Marvel a minimum guarantee over of $215 over five years, with $100 million paid up front. Marvel forecasts assume the company will receive far more than the minimum. As I quoted one analyst as saying, "By getting such big guarantees, it has a high hurdle going forward." Marvel's rollback in second half guidance would seem to reflect just how high that hurdle is.
Onward...
$22.85 (08/08/07)
