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JAKKS Pacific's (JAKK) Q1 Earnings Beat Estimates, Rise Y/Y

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JAKKS Pacific, Inc. (JAKK - Free Report) reported impressive first-quarter 2022 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The metrics increased on a year-over-year basis. Following the results, the company’s shares moved up 3.8% during the after-hours trading session on Apr 28.

Stephen Berman, chairman and CEO of JAKKS Pacific, stated, “As the year begins, we are starting to see strong results as more consumers discover and embrace films like Sonic the Hedgehog 2 and Disney’s Encanto, and want to deepen their relationships with the characters by engaging with a broad array of our toys, Halloween Costumes, day-to-day role play and many other related products.”

Q1 Earnings and Revenues

During the first quarter, the company reported an adjusted loss of 28 cents per share, narrower than the Zacks Consensus Estimate of a loss of 96 cents. In the prior-year quarter, the company had reported an adjusted loss of $1.77 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 $120.9 million surpassed the consensus mark of $91 million by 33.4%. The top line increased 44.2% on a year-over-year basis. The upside was primarily driven by growth in Action Play, Dolls/Dress-up and Costumes business. However, this was partially offset by weakness in the Outdoor/Seasonal business.

Net sales in the company’s Toys/Consumer Products segment increased 39.1% globally on a year-over-year basis, while sales in the Costumes segment increased 145.9% year over year. Sales from Action Play and Dolls business increased 93.2% and 37.3%, respectively, on a year-over-year basis.

Operating Highlights

In the reported quarter, gross margin came in at 24.7%, down 640 basis points (bps) from 31.1% reported in the prior-year quarter. The downside was mainly caused by a rise in inbound freight expenses. Adjusted EBITDA came in at $1.9 million during the quarter against ($2.4) million reported in the prior-year quarter.

Balance Sheet

As of Mar 31, 2022, the company’s cash and cash equivalents (including restricted cash) came in at $39.2 million compared with $84.1 million as of Mar 31, 2021. Debt, non-current portion, net as of Mar 31, 2022, was $92.9 million compared with $155 million as of Mar 31, 2021.

Zacks Rank & Key Picks

JAKKS Pacific currently has a Zacks Rank #4 (sell)

Some better-ranked stocks in the Consumer Discretionary sector are Funko, Inc. (FNKO - Free Report) , Bluegreen Vacations Holding Corporation (BVH - Free Report) and Clarus Corporation (CLAR - Free Report) .

Funko sports a Zacks Rank #1 (Strong Buy) at present. FNKO has a trailing four-quarter earnings surprise of 96.2%, on average. Shares of the company have declined 22.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Funko’s current financial year sales and earnings per share (EPS) suggests growth of 22.6% and 26.8%, respectively, from the year-ago period’s reported levels.

Bluegreen Vacations sports a Zacks Rank #1 at present. BVH has a trailing four-quarter earnings surprise of 425.1%, on average. The stock has increased 46.2% in the past year.

The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 8.3% and 20.8%, respectively, from the year-ago period’s reported levels.

Clarus sports a Zacks Rank #1 at present. The company has a trailing four-quarter earnings surprise of 12.3%, on average. Shares of the company have increased 15.7% in the past year.  

The Zacks Consensus Estimate for CLAR’s 2022 sales and EPS suggests growth of 25.3% and 23.1%, respectively, from the year-ago period’s levels.