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JAKKS Pacific (JAKK) Stock Up on Q1 Earnings & Revenue Beat
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JAKKS Pacific, Inc. (JAKK - Free Report) reported first-quarter 2021 results, wherein the top and the bottom line beat the Zacks Consensus Estimate. The company’s net sales topped the Zacks Consensus Estimate for the fourth straight quarter while earnings topped estimates for the third consecutive quarter. Following the results, the company’s shares moved up 9.6% during after-hour trading session on Apr 29.
Nonetheless, the company stated that it is making significant progress in operating performance on the back of cost-saving initiatives and improved inventory management. The company also disclosed that it has delivered the best first-quarter operating results since 2015, with significant improvement in sales, gross margin, adjusted net income and adjusted EBITDA. Notably, the company drove double-digit sales increases in all of its toy divisions: Boys, Girls and Seasonal. Also, the company anticipates more people to return to the normal pattern of shopping, gift-giving and celebrating Halloween.
Q1 Earnings and Revenues
The company reported adjusted loss of $1.77 per share, narrower than the Zacks Consensus Estimate of a loss of $3.50. Also, the metric improved significantly from the prior-year loss of $7.23 per share.
Revenues of $83.8 million beat the consensus mark of $68 million. Moreover, the top line rose 25.8% year over year. This increase was primarily driven by higher sales of video games, including Nintendo, Sonic the Hedgehog and Apex: Legends, Disney Princess, solid initial sales of Raya and the Last Dragon, and continued sales strength in Black & Decker. The company also witnessed strong sales of its own brands like Perfectly Cute and Redo Skateboards.
Net sales at the company’s Toys/Consumer Products segment grew 28% globally on a year-over-year basis.
Net sales at the company’s Disguise (Halloween) remained flat year over year.
JAKKS Pacific, Inc. Price, Consensus and EPS Surprise
In the reported quarter, gross margin was 31.1%, up 650 basis points (bps) from the prior-year level. This marked the highest first-quarter gross margin percentage since 2017. Margins benefited from effective cost control and improved inventory management. Adjusted EBITDA was a loss of $2.4 million, improving considerably from the loss of $13.9 million reported in the prior-year quarter.
Balance Sheet
As of Mar 31, 2021, cash and cash equivalents (including restricted cash) were $84.1 million compared with $92.7 million as of Dec 31, 2020. Debt, non-current portion, net as of Mar 31, 2021, was $155 million compared with $150.4 million at the end of 2020.
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JAKKS Pacific (JAKK) Stock Up on Q1 Earnings & Revenue Beat
JAKKS Pacific, Inc. (JAKK - Free Report) reported first-quarter 2021 results, wherein the top and the bottom line beat the Zacks Consensus Estimate. The company’s net sales topped the Zacks Consensus Estimate for the fourth straight quarter while earnings topped estimates for the third consecutive quarter. Following the results, the company’s shares moved up 9.6% during after-hour trading session on Apr 29.
Nonetheless, the company stated that it is making significant progress in operating performance on the back of cost-saving initiatives and improved inventory management. The company also disclosed that it has delivered the best first-quarter operating results since 2015, with significant improvement in sales, gross margin, adjusted net income and adjusted EBITDA. Notably, the company drove double-digit sales increases in all of its toy divisions: Boys, Girls and Seasonal. Also, the company anticipates more people to return to the normal pattern of shopping, gift-giving and celebrating Halloween.
Q1 Earnings and Revenues
The company reported adjusted loss of $1.77 per share, narrower than the Zacks Consensus Estimate of a loss of $3.50. Also, the metric improved significantly from the prior-year loss of $7.23 per share.
Revenues of $83.8 million beat the consensus mark of $68 million. Moreover, the top line rose 25.8% year over year. This increase was primarily driven by higher sales of video games, including Nintendo, Sonic the Hedgehog and Apex: Legends, Disney Princess, solid initial sales of Raya and the Last Dragon, and continued sales strength in Black & Decker. The company also witnessed strong sales of its own brands like Perfectly Cute and Redo Skateboards.
Net sales at the company’s Toys/Consumer Products segment grew 28% globally on a year-over-year basis.
Net sales at the company’s Disguise (Halloween) remained flat year over year.
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 31.1%, up 650 basis points (bps) from the prior-year level. This marked the highest first-quarter gross margin percentage since 2017. Margins benefited from effective cost control and improved inventory management. Adjusted EBITDA was a loss of $2.4 million, improving considerably from the loss of $13.9 million reported in the prior-year quarter.
Balance Sheet
As of Mar 31, 2021, cash and cash equivalents (including restricted cash) were $84.1 million compared with $92.7 million as of Dec 31, 2020. Debt, non-current portion, net as of Mar 31, 2021, was $155 million compared with $150.4 million at the end of 2020.
Zacks Rank
JAKKS Pacific — which shares space with Activision Blizzard, Inc. , Electronic Arts Inc. (EA - Free Report) and Hasbro, Inc. (HAS - Free Report) in the Zacks Toys - Games - Hobbies industry — currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>