Marvel has slated 'Ironman' for a bigscreen bow in 2008.
Like one of its superheroes, Marvel took some glancing blows Monday but quickly bounced back.
While profit shrank in the second quarter by 37% to $16.3 million, company wowed investors by turning in a number that was nearly twice what analysts had predicted.
Investors responded by buying up the stock and raising the price 7% to $19.36.
Money men were also heartened by Marvel raising its earnings guidance for the year, with the lower end of the profit range going from $40 million to $43 million, though much of that was attributable to a one-time tax benefit.
Company spent very little time discussing upcoming pics in its call with analysts, despite quarter being an eventful one in the movie department. In a surprise move two months ago, studio topper Avi Arad left the company to become a producer on "Spider-Man" and other flagship properties, selling several million shares of stock in the process.
Call was first in a long time in which Arad, normally an enthusiastic champion for the Marvel properties, could not be heard supporting the company's characters. Studio is now run by Hollywood vets Michael Helfant and Kevin Feige.
Marvel is winding down its licensing arrangements and will kick off its own slate with release of "Iron Man" in spring 2008. Nine movies, including "Ant Man" and "Captain America," will follow.
Company had yet to officially nail down financing for "Iron Man" as well as a possible "Hulk" sequel; it is in negotiations with Merrill Lynch over adding those properties to its debt facility.
Marvel's stock had been on an upward trajectory over the last year, rising more than 40% between November and June. But that increase may have been heavily driven by the repurchasing of its own stock. Since the company halted its buyback program at the end of June, the stock had dropped 10% before rebounding Monday.
Revenue was down about 4%, from $88 million to slightly over $84 million, mainly because of a 21% drop in its licensing biz and flagging sales for Spidey merchandise.
Despite Monday's stock bump, some analysts were skeptical, noting that given how much profit beat expectations, earnings guidance should have been revised upward more aggressively.
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