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JAKKS Pacific (JAKK) Q4 Earnings & Revenues Beat Estimates

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JAKKS Pacific, Inc. (JAKK - Free Report) reported impressive fourth-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Moreover, the metrics increased on a year-over-year basis. Following the results, the company’s shares increased 2.6% during the after-hour trading session on Feb 17.

Stephen Berman, chairman and CEO of JAKKS Pacific, stated, “We close 2021 with tremendous pride in our team’s performance, delivering great products and great results in a challenging operating environment. We continued to see exceptional top-line growth across a broad array of brands and categories along with continued margin expansion, despite an unprecedented increase in supply-chain costs.”

Q4 Earnings and Revenues

During the fourth quarter, the company reported adjusted earnings of 14 cents per share, beating the Zacks Consensus Estimate of a loss of 89 cents. In the prior-year quarter, the company had reported an adjusted loss of 80 cents per share.

JAKKS Pacific, Inc. Price, Consensus and EPS Surprise

 

JAKKS Pacific, Inc. Price, Consensus and EPS Surprise

JAKKS Pacific, Inc. price-consensus-eps-surprise-chart | JAKKS Pacific, Inc. Quote

 

Quarterly revenues of $188 million surpassed the consensus mark of $152 million by 23.9%. The top line increased 47% on a year-over-year basis. The top line benefitted from the pullover of inventory from the previous quarter that was impacted by logistic delays. This coupled with solid sell-throughs during the holiday season added to the upside.

Net sales in the company’s Toys/Consumer Products segment increased 48% globally on a year-over-year basis, while sales in the Costumes segment increased 22% year over year.

Operating Highlights

In the reported quarter, gross margin came in at 26.6%, down 620 basis points (bps) from 32.8% reported in the prior-year quarter. The downside was mainly due to a rise in ocean freight, port fees and trucking expenses. During the quarter, adjusted EBITDA came in at $5 million compared with $3.9 million reported in the prior-year quarter.

Balance Sheet

As of Dec 31, 2021, the company’s cash and cash equivalents (including restricted cash) came in at $45.3 million compared with $92.7 million as of Dec 31, 2020. Debt, non-current portion, net as of Dec 31, 2021, was $93.4 million compared with $150.4 million as of Dec 31, 2020.

2021 Highlights

Net sales in 2021 came in at $621.1 million compared with $515.9 million in 2020.

Adjusted EBITDA in 2021 came in at $49.2 million compared with $28.1 million in 2020.

In 2021, adjusted earnings per share (EPS) came in at $2.59 against $(1.72) reported in the previous year.

Zacks Rank & Other Key Picks

JAKKS Pacific Sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Some other top-ranked stocks from the Zacks Consumer Discretionary sector are Crocs, Inc. (CROX - Free Report) , Cedar Fair, L.P. (FUN - Free Report) and Ralph Lauren Corporation (RL - Free Report) .

Crocs flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 36%, on average. Shares of Crocs have increased by 2.8% in the past year.

The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 48.4% and 20.7%, respectively, from the year-ago period’s levels.

Cedar Fair flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 16.3%, on average. Shares of Cedar Fair have gained 25.1% in the past year.

The Zacks Consensus Estimate for FUN’s 2022 sales and EPS suggests growth of 26.9% and 576.2%, respectively, from the year-ago period’s levels.

Ralph Lauren flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 94.1%, on average. Shares of Ralph Lauren have increased 14.2% in the past year.

The Zacks Consensus Estimate for RL’s 2022 sales and EPS suggests growth of 40% and 381.2%, respectively, from the year-ago period’s levels.

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