Have you evaluated the performance of Jakks Pacific's (JAKK Quick QuoteJAKK - Free Report) international operations for the quarter ending September 2025? Given the extensive global presence of this toymaker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.

While delving into JAKK's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The company's total revenue for the quarter stood at $211.21 million, declining 34.3% 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

During the quarter, Asia contributed $1.53 million in revenue, making up 0.7% of the total revenue. When compared to the consensus estimate of $2.8 million, this meant a surprise of -45.5%. Looking back, Asia contributed $1.45 million, or 1.2%, in the previous quarter, and $2.35 million, or 0.7%, in the same quarter of the previous year.

Middle East and Africa generated $0.36 million in revenues for the company in the last quarter, constituting 0.2% of the total. This represented a surprise of -64.51% compared to the $1.02 million projected by Wall Street analysts. Comparatively, in the previous quarter, Middle East and Africa accounted for $0.24 million (0.2%), and in the year-ago quarter, it contributed $0.91 million (0.3%) to the total revenue.

Australia and New Zealand accounted for 1% of the company's total revenue during the quarter, translating to $2.1 million. Revenues from this region represented a surprise of -12.71%, with Wall Street analysts collectively expecting $2.4 million. When compared to the preceding quarter and the same quarter in the previous year, Australia and New Zealand contributed $0.89 million (0.7%) and $3.34 million (1%) to the total revenue, respectively.

Of the total revenue, $14.07 million came from Latin America during the last fiscal quarter, accounting for 6.7%. This represented a surprise of -18.22% as analysts had expected the region to contribute $17.2 million to the total revenue. In comparison, the region contributed $6.05 million, or 5.1%, and $22.63 million, or 7%, to total revenue in the previous and year-ago quarters, respectively.

Of the total revenue, $9.24 million came from Canada during the last fiscal quarter, accounting for 4.4%. This represented a surprise of -21.52% as analysts had expected the region to contribute $11.77 million to the total revenue. In comparison, the region contributed $8.83 million, or 7.4%, and $7.07 million, or 2.2%, to total revenue in the previous and year-ago quarters, respectively.

Europe accounted for 13.9% of the company's total revenue during the quarter, translating to $29.41 million. Revenues from this region represented a surprise of -21.91%, with Wall Street analysts collectively expecting $37.66 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $14.66 million (12.3%) and $30.03 million (9.3%) to the total revenue, respectively.

Prospective Revenues in International Markets

Wall Street analysts expect Jakks to report $132.59 million in total revenue for the current fiscal quarter, indicating an increase of 1.4% from the year-ago quarter. Asia, Middle East and Africa, Australia and New Zealand, Latin America, Canada and Europe are expected to contribute 1% (translating to $1.31 million), 0.4% ($0.47 million), 0.7% ($0.97 million), 5.4% ($7.1 million), 4.3% ($5.76 million), and 13.5% ($17.83 million) to the total revenue, respectively.

For the full year, a total revenue of $625.67 million is expected for the company, reflecting a decline of 9.5% 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 1%, 0.3%, 0.8%, 6%, 4.7%, and 13.1% of this total, corresponding to $6.32 million, $2.12 million, $4.87 million, $37.81 million, $29.64 million, and $81.95 million, respectively.

Key Takeaways

Relying on global markets for revenues presents both prospects and challenges for Jakks. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

Jakks currently has a Zacks Rank #4 (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 >>>> .

Jakks Pacific's Recent Stock Market Performance

Over the preceding four weeks, the stock's value has diminished by 10.1%, against an upturn of 2.4% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Discretionary sector, which counts Jakks among its entities, has depreciated by 11%. Over the past three months, the company's shares have seen an increase of 3.5% versus the S&P 500's 8.2% increase. The sector overall has witnessed a decline of 9% over the same period.