Investors Disappointed With Marvel's Q2 revenue And Outlook

Marvel Technology Group Ltd

announced mixed results for the second quarter. While its adjusted EPS came in above expectations, revenue fell shy of the estimates. The company's outlook for the third quarter also disappointed investors sending the stock down in the pre-market trading Tuesday. The company reported net income of $51 million, or $0.10 a share, compared to a net loss of $771.94 million, or a loss of $1.49 a share, in the year-ago quarter. On an adjusted basis, it would have earned $92 million, or $0.18 a share. This is better than the Street expectations of $0.11 a share. Marvel generated revenue of $626.4 million, down 12 percent from $710.49 million in the previous year quarter. This is show of the analysts' predictions of $629.96 million. The company's President and CEO, Matt Murphy, said, "We are also beginning to see the benefits of improved focus on product cost as well as a more disciplined approach to spending, which resulted in better than expected earnings per share." Going forward the company guided third quarter EPS to be $0.03 - $0.08 and adjusted EPS between $0.08 and $0.13. Analysts are looking for an EPS of $0.14. Aside from these, Marvel pointed out an error in the first quarter earnings. The revised adjusted net income increased from $6.5 million to $9.3 million and EPS from $0.01 to $0.02 in the first quarter. Following the results, MRVL traded down by $0.15, or 1.15 percent, to $12.86 in the pre-market trading.