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Interpreting Jakks (JAKK) International Revenue Trends

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Have you assessed how the international operations of Jakks Pacific (JAKK - Free Report) performed in the quarter ended June 2025? For this toymaker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Upon examining JAKK's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter stood at $119.09 million, declining 19.9% year over year. Now, let's delve into JAKK's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Decoding JAKK's International Revenue Trends

Asia accounted for 1.22% of the company's total revenue during the quarter, translating to $1.45 million. Revenues from this region represented a surprise of +20.67%, with Wall Street analysts collectively expecting $1.2 million. When compared to the preceding quarter and the same quarter in the previous year, Asia contributed $0.75 million (0.66%) and $1.27 million (0.85%) to the total revenue, respectively.

During the quarter, Middle East and Africa contributed $0.24 million in revenue, making up 0.20% of the total revenue. When compared to the consensus estimate of $0.38 million, this meant a surprise of -36.84%. Looking back, Middle East and Africa contributed $0.4 million, or 0.35%, in the previous quarter, and $0.12 million, or 0.08%, in the same quarter of the previous year.

Of the total revenue, $0.89 million came from Australia and New Zealand during the last fiscal quarter, accounting for 0.74%. This represented a surprise of -32.37% as analysts had expected the region to contribute $1.31 million to the total revenue. In comparison, the region contributed $0.61 million, or 0.54%, and $1.61 million, or 1.08%, to total revenue in the previous and year-ago quarters, respectively.

Latin America generated $6.05 million in revenues for the company in the last quarter, constituting 5.08% of the total. This represented a surprise of -5.96% compared to the $6.43 million projected by Wall Street analysts. Comparatively, in the previous quarter, Latin America accounted for $7.46 million (6.59%), and in the year-ago quarter, it contributed $3.24 million (2.18%) to the total revenue.

Of the total revenue, $8.83 million came from Canada during the last fiscal quarter, accounting for 7.41%. This represented a surprise of +113.19% as analysts had expected the region to contribute $4.14 million to the total revenue. In comparison, the region contributed $3.28 million, or 2.90%, and $6.29 million, or 4.23%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Europe contributed $14.66 million in revenue, making up 12.31% of the total revenue. When compared to the consensus estimate of $14.88 million, this meant a surprise of -1.5%. Looking back, Europe contributed $11.81 million, or 10.43%, in the previous quarter, and $10.26 million, or 6.91%, in the same quarter of the previous year.

Anticipated Revenues in Overseas Markets

The current fiscal quarter's total revenue for Jakks, as projected by Wall Street analysts, is expected to reach $315.72 million, reflecting a decline of 1.8% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia is anticipated to contribute 0.9% or $2.7 million, Middle East and Africa 0.4% or $1.14 million, Australia and New Zealand 0.9% or $2.74 million, Latin America 5.7% or $17.89 million, Canada 2.9% or $9.05 million and Europe 12.3% or $38.73 million.

For the full year, a total revenue of $691.25 million is expected for the company, reflecting an increase of 0% from the year before. The revenues from Asia, Middle East and Africa, Australia and New Zealand, Latin America, Canada and Europe are expected to make up 0.9%, 0.4%, 0.8%, 5.6%, 3% and 12% of this total, corresponding to $5.85 million, $2.43 million, $5.76 million, $38.86 million, $20.53 million and $82.93 million respectively.

Closing Remarks

Relying on international markets for revenues, Jakks faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

Jakks currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Exploring Recent Trends in Jakks' Stock Price

Over the preceding four weeks, the stock's value has diminished by 7%, against an upturn of 4.9% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Discretionary sector, which counts Jakks among its entities, has appreciated by 2.3%. Over the past three months, the company's shares have seen an increase of 1.8% versus the S&P 500's 16% increase. The sector overall has witnessed an increase of 15.5% over the same period.

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