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JAKKS Pacific (JAKK) Reports Wider-Than-Expected Q1 Loss
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JAKKS Pacific, Inc. (JAKK - Free Report) incurred adjusted loss of 98 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of loss of 56 cents. The company incurred loss of 85 cents per share in the prior-year quarter.
Net sales totaled $70.8 million, which lagged the Zacks Consensus Estimate by 10%. The top line also fell 23.8% on a year-over-year basis. The company expects sales to grow by nearly 5% in 2019.
Following the quarterly results, shares of the company decreased 2.9% in after-hours trading on May 9. Notably, the challenging industry scenario for traditional toymakers hurt JAKKS Pacific’s first-quarter results. The Toys ‘R’ Us liquidation was another reason behind its disappointing performance in the quarter under review.
JAKKS Pacific, Inc. Price, Consensus and EPS Surprise
In the reported quarter, gross margin was 20.2%, down 450 basis points (bps) from the prior-year quarter. Adjusted EBITDA was a negative $17.1 million compared with a negative $14.6 million in the prior-year quarter.
Balance Sheet
As of Mar 31, 2019, cash and cash equivalents amounted to $42.4 million compared with $53.3 million as of Dec 31, 2018. Inventory decreased to $44.7 million from $53.9 million at the end of Dec 31, 2018. Long-term debt, as of Mar 31, 2019, totaled $142.4 million, up from $139.8 million at the end of 2018.
Zacks Rank & Other Stocks to Consider
JAKKS Pacific currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the industry are Electronic Arts (EA - Free Report) , Hasbro (HAS - Free Report) and Glu Mobile . While Electronic Arts currently sports a Zacks Rank #1 (Strong Buy), Hasbro and Glu Mobile carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Electronic Arts, Hasbro and Glu Mobile’s long-term EPS is projected to increase 16.5%, 10.7% and 15%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
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JAKKS Pacific (JAKK) Reports Wider-Than-Expected Q1 Loss
JAKKS Pacific, Inc. (JAKK - Free Report) incurred adjusted loss of 98 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of loss of 56 cents. The company incurred loss of 85 cents per share in the prior-year quarter.
Net sales totaled $70.8 million, which lagged the Zacks Consensus Estimate by 10%. The top line also fell 23.8% on a year-over-year basis. The company expects sales to grow by nearly 5% in 2019.
Following the quarterly results, shares of the company decreased 2.9% in after-hours trading on May 9. Notably, the challenging industry scenario for traditional toymakers hurt JAKKS Pacific’s first-quarter results. The Toys ‘R’ Us liquidation was another reason behind its disappointing performance in the quarter under review.
JAKKS Pacific, Inc. Price, Consensus and EPS Surprise
JAKKS Pacific, Inc. price-consensus-eps-surprise-chart | JAKKS Pacific, Inc. Quote
Operating Highlights
In the reported quarter, gross margin was 20.2%, down 450 basis points (bps) from the prior-year quarter. Adjusted EBITDA was a negative $17.1 million compared with a negative $14.6 million in the prior-year quarter.
Balance Sheet
As of Mar 31, 2019, cash and cash equivalents amounted to $42.4 million compared with $53.3 million as of Dec 31, 2018. Inventory decreased to $44.7 million from $53.9 million at the end of Dec 31, 2018. Long-term debt, as of Mar 31, 2019, totaled $142.4 million, up from $139.8 million at the end of 2018.
Zacks Rank & Other Stocks to Consider
JAKKS Pacific currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the industry are Electronic Arts (EA - Free Report) , Hasbro (HAS - Free Report) and Glu Mobile . While Electronic Arts currently sports a Zacks Rank #1 (Strong Buy), Hasbro and Glu Mobile carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Electronic Arts, Hasbro and Glu Mobile’s long-term EPS is projected to increase 16.5%, 10.7% and 15%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>