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JAKKS Pacific (JAKK) Q4 Earnings Lag Estimates, Stock Down
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JAKKS Pacific, Inc. (JAKK - Free Report) reported fourth-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the top and bottom lines missed the consensus estimate after beating in the preceding three quarters.
Following the announcement, shares of the company decreased 16% during the after-hours trading session on Feb 29. In the fourth quarter, two out of the company's top three U.S. Toys/Consumer Products managed to achieve positive year-over-year retail sales figures, despite facing challenging comparisons from the previous year. Additionally, the aggregate end-of-year inventory at retail for these three accounts has decreased by a high single-digit percentage compared with the previous year. While customers are cautiously transitioning into the new year, JAKK remains confident that its core businesses are stable.
Q4 Earnings and Revenues
During the quarter, the company reported adjusted loss per share of $1.21, wider than the Zacks Consensus Estimate of loss of 74 cents. In the prior-year quarter, JAKK reported adjusted loss of $1.60.
Quarterly revenues of $124.7 million missed the consensus mark of $137 million. Moreover, the top line declined 3% on a year-over-year basis.
Net sales in the Toys/Consumer Products segment increased 1% year over year to $118.9 million. Our estimate was $108.4 million.
Costumes net sales declined 39.7% year over year to $8.5 million. Our projection was $33 million.
JAKKS Pacific, Inc. Price, Consensus and EPS Surprise
In the reported quarter, gross margin reached 26.5%, up 480 basis points from the prior-year levels. We predicted the metric to be 22%.
Adjusted EBITDA amounted to ($10.9) million compared with ($12.1) million a year ago.
Balance Sheet
As of Dec 31, 2023, the company’s cash and cash equivalents (including restricted cash) were $72.6 million compared with $85.5 million as of Dec 31, 2022. As of Dec 31, 2023, total debt was zero in contrast to $67.2 million as of Dec 31, 2022.
Zacks Rank
JAKKS Pacific currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the Zacks Consumer Discretionary sector are presented below.
Trip.com Group Limited (TCOM - Free Report) currently sports a Zacks Rank #1 (Strong Buy). TCOM has a trailing four-quarter earnings surprise of 199.4%, on average. Shares of TCOM have gained 17.5% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TCOM’s 2024 sales and EPS indicates a rise of 17.7% and 18%, respectively, from the year-ago levels.
H World Group Limited (HTHT - Free Report) currently carries a Zacks Rank of 2 (Buy). It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has fallen 24.8% in the past year.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.2% and 7.1%, respectively, from the year-earlier actuals.
Carnival Corporation & plc (CCL - Free Report) carries a Zacks Rank #2 at present. It has a trailing four-quarter earnings surprise of 19.2%, on average. The stock has gained 46.1% in the past year.
The Zacks Consensus Estimate for CCL’s 2024 sales indicates a rise of 13.8% from the prior-year levels.
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JAKKS Pacific (JAKK) Q4 Earnings Lag Estimates, Stock Down
JAKKS Pacific, Inc. (JAKK - Free Report) reported fourth-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the top and bottom lines missed the consensus estimate after beating in the preceding three quarters.
Following the announcement, shares of the company decreased 16% during the after-hours trading session on Feb 29. In the fourth quarter, two out of the company's top three U.S. Toys/Consumer Products managed to achieve positive year-over-year retail sales figures, despite facing challenging comparisons from the previous year. Additionally, the aggregate end-of-year inventory at retail for these three accounts has decreased by a high single-digit percentage compared with the previous year. While customers are cautiously transitioning into the new year, JAKK remains confident that its core businesses are stable.
Q4 Earnings and Revenues
During the quarter, the company reported adjusted loss per share of $1.21, wider than the Zacks Consensus Estimate of loss of 74 cents. In the prior-year quarter, JAKK reported adjusted loss of $1.60.
Quarterly revenues of $124.7 million missed the consensus mark of $137 million. Moreover, the top line declined 3% on a year-over-year basis.
Net sales in the Toys/Consumer Products segment increased 1% year over year to $118.9 million. Our estimate was $108.4 million.
Costumes net sales declined 39.7% year over year to $8.5 million. Our projection was $33 million.
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 reached 26.5%, up 480 basis points from the prior-year levels. We predicted the metric to be 22%.
Adjusted EBITDA amounted to ($10.9) million compared with ($12.1) million a year ago.
Balance Sheet
As of Dec 31, 2023, the company’s cash and cash equivalents (including restricted cash) were $72.6 million compared with $85.5 million as of Dec 31, 2022. As of Dec 31, 2023, total debt was zero in contrast to $67.2 million as of Dec 31, 2022.
Zacks Rank
JAKKS Pacific currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the Zacks Consumer Discretionary sector are presented below.
Trip.com Group Limited (TCOM - Free Report) currently sports a Zacks Rank #1 (Strong Buy). TCOM has a trailing four-quarter earnings surprise of 199.4%, on average. Shares of TCOM have gained 17.5% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TCOM’s 2024 sales and EPS indicates a rise of 17.7% and 18%, respectively, from the year-ago levels.
H World Group Limited (HTHT - Free Report) currently carries a Zacks Rank of 2 (Buy). It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has fallen 24.8% in the past year.
The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.2% and 7.1%, respectively, from the year-earlier actuals.
Carnival Corporation & plc (CCL - Free Report) carries a Zacks Rank #2 at present. It has a trailing four-quarter earnings surprise of 19.2%, on average. The stock has gained 46.1% in the past year.
The Zacks Consensus Estimate for CCL’s 2024 sales indicates a rise of 13.8% from the prior-year levels.