Posted By:
bruce Dorskind
Topps beats quarterly estimates on card sales
by David Jones
Topps Co. reported a 31% drop in quarterly earnings but still beat Wall Street estimates.
The Manhattan-based bubble gum and trading card maker earned $3.4 million, or 8 cents a share, in the second quarter ended Aug. 26, down from $4.8 million or 12 cents a share in the year-earlier period.
Stronger sales from its U.S. trading card business helped lift revenue 9% to $82.3 million.
Excluding pre-tax charges of $2 million related to severance pay and the company's recent proxy fight, Topps earned 12 cents as share, exceeding Wall Street estimates of 8 cents a share.
Topps said sales in its entertainment unit rose 30% to $42.5 million, as sales of U.S. trading cards increased "substantially," which more than offset declines in the firm's international publishing business and WizKids Inc. unit.
Shares of Topps rose as much as 6% to $9.39 and were up 2.7% intraday.