Marvel made too much money in latest quarter

LOS ANGELES (Hollywood Reporter) - Marvel Entertainment Inc was a victim of its own success Tuesday, reporting that money from the box office smash "Iron Man" has poured into its coffers earlier than expected.

That helped Marvel crush estimates for its third-quarter financial performance, though it also means the company will underperform expectations next year.

Investors took most of the trading session to decide whether the good news outweighed the bad. In the end, Marvel stock nearly sat out a powerful Election Day rally. Its shares finished up 1.9% at $31.45 on the New York Stock Exchange, about the midway point of its 52-week range.

Profit at Marvel rose 39% to $50.6 million on revenue that surged 48% to $182.5 million. About $60 million of those sales can be attributed to "Iron Man" revenue that Marvel originally predicted wouldn't be recognized until next year.

The superhero saga, starring Robert Downey, Jr., grossed about $580 million at the worldwide box office, and has been a huge hit on DVD and Blu-ray Disc.

With no new Marvel-produced releases set for next year and a bunch of "Iron Man" money already accounted for, Marvel significantly reined in its 2009 forecast while beefing up its full-year 2008 forecast.

Marvel now sees revenue of up to $460 million next year, while analysts were looking for $610 million. For this year, revenue could go as high as $670 million, while it previously predicted about $480 million.

Marvel's next big theatrical events are "Iron Man 2" and "Thor" in 2010, and the company also expects that by the end of that year that its "Spider-Man" Broadway musical will have premiered.

"We are not funding the show but we are co-producing it and have a meaningful first dollar gross participation," said David Maisel, chairman of the Marvel Studios unit.

Marvel brass said they haven't seen any negative effects from a downshifting economy as far as its film division is concerned, though the downturn has cut into its comic book business a tad.

Executives also worried Tuesday about the ability of some partners to make and distribute Marvel-related toys and games.

"The real concern that we have on a global basis is the credit availabilities for all of our licensees that are manufacturers," CFO Kenneth West said. [Source from: Reuters/Hollywood Reporter]