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JAKKS Pacific (JAKK) to Post Q4 Earnings: What's in Store?

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JAKKS Pacific, Inc. (JAKK - Free Report) is scheduled to report fourth-quarter 2022 results on Mar 9, after market close. In the last reported quarter, the company delivered an earnings surprise of 3%.

How Are Estimates Placed?

The Zacks Consensus Estimate is pegged at a loss of $1.49 per share. In the last reported quarter, the company reported earnings per share of 14 cents. For revenues, the Zacks Consensus Estimate is pegged at $81.3 million, suggesting a decline of 56.8% 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 fourth-quarter top line is likely to have negatively impacted by dismal North America and International sales. We expect United States and Canada sales to decline 55.5% and 55.2%, respectively, year over year. On the other hand, we expect International sales to decrease 62.1% year over year.

However, focus on online retailing coupled with modifications in its sales and logistics capabilities are likely to have aided JAKK’s results. Notably, the company has been benefiting from strategic acquisitions, solid international footprint, focus on innovation and collaborations with popular brands and movie franchisees.

However, rise in inbound freight expenses is likely to have affected margins. During third-quarter 2022, gross margin came in at 28.5%, down 310 basis points from the prior-year quarter.

JAKKS Pacific, Inc. Price and EPS Surprise 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 doesn’t conclusively predict 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 0.00%. 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 #4 (Sell).

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.

Crocs, Inc. (CROX - Free Report) has an Earnings ESP of +3.18% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Crocs have gained 86.1% in the past year. CROX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 21.8%.

Hyatt Hotels Corporation (H - Free Report) has an Earnings ESP of +3.24% and a Zacks Rank #2.

Shares of Hyatt have gained 49.3% in the past year. H’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 1,380.7%.

Monarch Casino & Resort, Inc. (MCRI - Free Report) has an Earnings ESP of +4.12% and a Zacks Rank #3.

Shares of Monarch Casino have declined 1.7% in the past year. MCRI’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and missed once, the average surprise being 3.7%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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