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JAKKS Pacific (JAKK) Q1 Earnings & Revenues Top Estimates
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JAKKS Pacific, Inc. (JAKK - Free Report) reported first-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Revenues surpassed the consensus estimate for the sixth straight quarter. However, both the metrics declined on a year-over-year basis.
Q1 Earnings and Revenues
During the quarter, the company reported an adjusted loss of 62 cents per share, narrower than the Zacks Consensus Estimate of a loss of 75 cents. In the prior-year quarter, JAKK reported adjusted loss per share of 37 cents.
Quarterly revenues of $107.5 million surpassed the consensus mark of $91 million by 18%. However, the top line declined 11% on a year-over-year basis. The downside was mainly due dismal sales in North America.
Net sales in Toys/Consumer Products segment declined 11.9% globally on a year-over-year basis. Sales in North America declined 15.9%, but in international it increased 12.4%. Sales in the Disguise costumes segment declined to $9.6 million from $9.8 million in the prior-year quarter.
JAKKS Pacific, Inc. Price, Consensus and EPS Surprise
In the reported quarter, gross margin came in at 29.2%, up 450 basis points from the prior-year quarter. The upside was driven by a decline in container and import-related costs, which overshadowed higher royalty and product costs as a percent of sales. Adjusted EBITDA came in at $(1.1) million during the quarter against $1.9 million reported in the prior-year quarter.
Balance Sheet
As of Mar 31, the company’s cash and cash equivalents (including restricted cash) were $38.3 million compared with $85.5 million as of Dec 31, 2022. Debt, non-current portion, net as of Mar 31, was $27 million compared with $92.9 million as of Mar 31, 2022.
Zacks Rank & Key Picks
JAKKS Pacific currently has a Zacks Rank #4 (Sell).
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JAKKS Pacific (JAKK) Q1 Earnings & Revenues Top Estimates
JAKKS Pacific, Inc. (JAKK - Free Report) reported first-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Revenues surpassed the consensus estimate for the sixth straight quarter. However, both the metrics declined on a year-over-year basis.
Q1 Earnings and Revenues
During the quarter, the company reported an adjusted loss of 62 cents per share, narrower than the Zacks Consensus Estimate of a loss of 75 cents. In the prior-year quarter, JAKK reported adjusted loss per share of 37 cents.
Quarterly revenues of $107.5 million surpassed the consensus mark of $91 million by 18%. However, the top line declined 11% on a year-over-year basis. The downside was mainly due dismal sales in North America.
Net sales in Toys/Consumer Products segment declined 11.9% globally on a year-over-year basis. Sales in North America declined 15.9%, but in international it increased 12.4%. Sales in the Disguise costumes segment declined to $9.6 million from $9.8 million in the prior-year quarter.
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 came in at 29.2%, up 450 basis points from the prior-year quarter. The upside was driven by a decline in container and import-related costs, which overshadowed higher royalty and product costs as a percent of sales. Adjusted EBITDA came in at $(1.1) million during the quarter against $1.9 million reported in the prior-year quarter.
Balance Sheet
As of Mar 31, the company’s cash and cash equivalents (including restricted cash) were $38.3 million compared with $85.5 million as of Dec 31, 2022. Debt, non-current portion, net as of Mar 31, was $27 million compared with $92.9 million as of Mar 31, 2022.
Zacks Rank & Key Picks
JAKKS Pacific currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Hilton Grand Vacations Inc. (HGV - Free Report) , Crocs, Inc. (CROX - Free Report) and PlayAGS, Inc. (AGS - Free Report) . While Hilton Grand Vacations currently sports a Zacks Rank #1 (Strong Buy), Crocs and PlayAGS carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hilton Grand Vacations has a trailing four-quarter earnings surprise of 12.1%, on average. Shares of HGV have declined 6.8% in the past year.
The Zacks Consensus Estimate for HGV’s 2023 sales and EPS indicates rises of 7.3% and 3.4%, respectively, from the year-ago period’s levels.
Crocs has a trailing four-quarter earnings surprise of 21.8%, on average. Shares of Crocs have increased 112% in the past year.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates increases of 12.5% and 3.3%, respectively, from the year-ago period’s levels.
PlayAGS has a trailing four-quarter earnings surprise of 133.3%, on average. The stock has decreased 5.8% in the past year.
The Zacks Consensus Estimate for AGS’ 2024 sales and EPS indicates improvements of 3% and 1,873.3%, respectively, from the year-ago period’s levels.