Marvel Ups '04 Guidance, Says '03 Will Come In Low

Marvel Enterprises on Monday substantially raised its guidance for next year while saying that 2003 results are expected to come in slightly below analysts' estimates. Marvel also announced the hiring of Tokyo-based managing director Bill Rahn, who, along with the hiring announced last week of Bruno Maglione in London, will oversee a drive to expand Marvel's international business (HR 11/14).

Marvel's revised estimates were announced after the market's close Monday, one day ahead of its inaugural analyst day webcast scheduled for this morning out of New York. The company had recently raised its financial guidance for 2003 but said revenue was flat for the third quarter (HR 11/5).

For 2004, Marvel expects increases in both net sales and operating income compared with 2003. Its net sales guidance is now at $415 million-$435 million, compared with its previous estimate of $315 million-$345 million. Operating income is expected to come in at $173 million-$193 million, vs. the $137 million-$157 million previously forecast. The company said, though, that because of a higher effective tax rate next year, it expects a decline in net income and earnings per share from operations year-over-year.

Marvel said net income for 2003 is expected to be $1.94-$2 per share on sales of $324 million-$329 million. Excluding an income tax benefit, Marvel predicts earnings will be $1.52 to $1.58 per share, compared with analysts' mean expectation of $1.62.

Marvel has been without a big movie release the last half of this year, following such successes as "The Hulk," "Daredevil" and last year's "Spider-Man." Next year, such releases as "Spider-Man 2," "The Punisher" and "Fantastic Four" are expected to boost Marvel's bottom line.

Marvel also has identified the international market as a growth area for its licensing business. The announcement of Rahn to focus on Asia is a key to that strategy. Rahn spent the past seven years as managing director at Universal Studios Consumer Products Group Japan and Asia-Pacific. Maglione also joined Marvel from Universal Studios. Before Universal, Rahn worked for McDonald's Japan and promotions firm Simon Marketing.