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Why Is Jakks (JAKK) Down 4.6% Since Last Earnings Report?

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It has been about a month since the last earnings report for Jakks Pacific (JAKK - Free Report) . Shares have lost about 4.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Jakks due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

JAKKS Pacific Q1 Earnings & Net Sales Lag Estimates

JAKKS Pacific reported first-quarter 2024 results, with earnings and net sales missing the Zacks Consensus Estimate. Both the top and bottom lines missed the consensus estimate for the second straight quarter.

Q1 Earnings and Net Sales

During the quarter, the company reported adjusted loss per share of $1.09, wider than the Zacks Consensus Estimate of a loss of 32 cents. In the prior-year quarter, JAKK reported adjusted loss of 40 cents.

Quarterly net sales of $90.1 million missed the consensus mark of $104 million. Moreover, the top line declined 16% on a year-over-year basis.

Net sales in the Toys/Consumer Products segment decreased 15.3% year over year to $82.9 million.

Costumes net sales declined 25.3% year over year to $7.2 million.

Operating Highlights

In the reported quarter, gross margin reached 23.4%, down 580 basis points from the prior-year levels. We predicted the metric to be 27.4%.

Adjusted EBITDA amounted to ($17.2) million compared with ($1.1) million a year ago.

Balance Sheet

As of Mar 31, 2024, the company’s cash and cash equivalents (including restricted cash) were $35.5 million compared with $38.3 million as of Mar 31, 2023. As of Mar 31, 2024, total debt was zero compared with $29.4 million as of Dec 31, 2023.

How Have Estimates Been Moving Since Then?

Fresh estimates followed an upward path over the past two months.

VGM Scores

At this time, Jakks has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.


Jakks has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

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