Marvel has raised its guidance for 2004, and is now predicting $415-$435 million in sales, around $100 million more than it was predicting a few weeks ago.  Net income is expected to be $98-$111 million, vs. the previous guidance of $74-$87 million.  This is still a decline for the projected 03 earnings, due to the impact of having to pay taxes vs. using a net operating loss carry-forward to eliminate taxes in 03.  Given the margins on the increased sales, it looks to us like most of the increase is expected from the toy division, which will book the sales of toys from the Spider-Man movie (unlike Hulk toy revenues, which were booked as licensing). 

Other items Marvel lists as driving 04 earnings are its recently announced international licensing initiatives (see, most recently, 'Marvel Raids Universal Again'), its five-movie slate for 04 (see 'Marvel's Movie Outlook'), and publishing.  In publishing, Marvel expects its core business to grow, as well as 'moderate' growth in book store sales.  Advertising and 'young adult' products are also expected to grow by late in the year.