We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
JAKKS Pacific (JAKK) Gears Up for Q3 Earnings: What's in Store?
Read MoreHide Full Article
JAKKS Pacific, Inc. (JAKK - Free Report) is scheduled to report its third-quarter 2022 results on Oct 27, after the market close. In the last reported quarter, the company delivered an earnings surprise of 423.1%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at $3.69 per share, indicating a decline of 1.9% from the $3.76 reported in the year-ago quarter. For revenues, the consensus mark is pegged at $279.4 million. The projection suggests an increase of 17.9% from the year-ago quarter’s reported figure.
Let’s analyze the factors that are likely to make an impact this earnings season.
Factors to Note
JAKKS Pacific’s third-quarter top line is likely to have benefited from robust demand for its products, solid international footprint and licensing agreements. This, along with the focus on online retailing and modifications in its sales and logistics capabilities, are likely to have driven the company’s top line in the to-be-reported quarter.
Robust North America and Canada sales are likely to have driven the results. We expect the United States and Canada sales to improve 16% and 1.1%, respectively, year over year. On the other hand, we expect international sales to increase 34.9% year over year.
However, a rise in inbound freight expenses is likely to hurt margins. We expect the gross margin to be 30.4% compared with the 31.6% reported in the prior-year quarter. Moreover, we expect the operating margin to be 14.7% compared with the 15.5% reported in the year-ago quarter.
Our proven model conclusively predicts an earnings beat for JAKKS Pacific this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: JAKKS Pacific has an Earnings ESP of +3.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat:
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #1.
Shares of RCI Hospitality have improved 2.2% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
Activision Blizzard, Inc. has an Earnings ESP of +3.93% and a Zacks Rank #3.
Shares of Activision Blizzard have declined 10.6% in the past year. ATVI’s earnings surpassed the consensus mark in all of the trailing two out of four quarters and missed twice, the average miss being 11%.
Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.
Shares of Cedar Fair have declined 13.9% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.
Image: Bigstock
JAKKS Pacific (JAKK) Gears Up for Q3 Earnings: What's in Store?
JAKKS Pacific, Inc. (JAKK - Free Report) is scheduled to report its third-quarter 2022 results on Oct 27, after the market close. In the last reported quarter, the company delivered an earnings surprise of 423.1%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at $3.69 per share, indicating a decline of 1.9% from the $3.76 reported in the year-ago quarter. For revenues, the consensus mark is pegged at $279.4 million. The projection suggests an increase of 17.9% from the year-ago quarter’s reported figure.
Let’s analyze the factors that are likely to make an impact this earnings season.
Factors to Note
JAKKS Pacific’s third-quarter top line is likely to have benefited from robust demand for its products, solid international footprint and licensing agreements. This, along with the focus on online retailing and modifications in its sales and logistics capabilities, are likely to have driven the company’s top line in the to-be-reported quarter.
Robust North America and Canada sales are likely to have driven the results. We expect the United States and Canada sales to improve 16% and 1.1%, respectively, year over year. On the other hand, we expect international sales to increase 34.9% year over year.
However, a rise in inbound freight expenses is likely to hurt margins. We expect the gross margin to be 30.4% compared with the 31.6% reported in the prior-year quarter. Moreover, we expect the operating margin to be 14.7% compared with the 15.5% reported in the year-ago quarter.
JAKKS Pacific, Inc. Price and EPS Surprise
JAKKS Pacific, Inc. price-eps-surprise | JAKKS Pacific, Inc. Quote
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for JAKKS Pacific this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: JAKKS Pacific has an Earnings ESP of +3.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: JAKKS Pacific currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat:
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #1.
Shares of RCI Hospitality have improved 2.2% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
Activision Blizzard, Inc. has an Earnings ESP of +3.93% and a Zacks Rank #3.
Shares of Activision Blizzard have declined 10.6% in the past year. ATVI’s earnings surpassed the consensus mark in all of the trailing two out of four quarters and missed twice, the average miss being 11%.
Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.
Shares of Cedar Fair have declined 13.9% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.