Topps Takes Earnings Hit

Its earnings drop due to charges, but it beats the Street on revenue and reaffirms guidance.
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The Topps Co.

(TOPP)

reported fiscal second-quarter earnings that dropped below last year's figures because of severance and proxy-battled-related charges.

The candy and trading card company posted net income of $3.4 million, or 8 cents a share, as compared to $4.8 million, or 12 cents a share, in the prior-year period. Net sales for the quarter were $82.3 million, vs. $74.9 million a year ago.

Excluding one-time charges this quarter and special income last year, the earnings comparison would have been 12 cents a share vs. 8 cents a share in the corresponding prior-year period.

The average analyst estimate from Thomson First Call called for earnings of 8 cents a share on $78.5 million in revenue.

The company reaffirmed its earnings outlook of 25 cents to 30 cents a share for fiscal 2007, excluding non-recurring items. The analyst estimate calls for full-year EPS of 26 cents.

Shares of Topps were trading up 36 cents, or 4%, at $9.22 Thursday.