JAKKS Pacific, Inc. (JAKK - Free Report) incurred adjusted loss of 83 cents per share in second-quarter 2019, wider than the Zacks Consensus Estimate of loss of 44 cents. The company incurred loss of 72 cents per share in the prior-year quarter.
Its net sales totaled $95.2 million, which surpassed the Zacks Consensus Estimate by 4.5%. However, the top line fell 10% on a year-over-year basis. The company expects sales to grow nearly 5% in 2019.
Following the quarterly results, shares of the company declined 10% on Aug 9. Notably, the challenging industry scenario for traditional toymakers hurt JAKKS Pacific’s second-quarter results. Also, shares of the company have lost 51% so far this year against the industry’s rally of 12%.
Its profit margins have been low, given the declining sales trend and higher loss from operations. However, management stated that the company is trying to improve adjusted EBITDA in 2019.
In the reported quarter, gross margin was 18.6%, down 780 basis points (bps) from the prior-year quarter. Adjusted EBITDA was a negative $11.5 million compared with a negative $8.5 million in the prior-year quarter.
JAKKS Pacific, Inc. Price, Consensus and EPS Surprise
As of Jun 30, 2019, cash and cash equivalents amounted to $37 million compared with $53.3 million as of Dec 31, 2018. Inventory declined to $53.5 million from $53.9 million at the end of Dec 31, 2018. Long-term debt, as of Jun 30, 2019, totaled $160.7 million, up from $139.8 million at the end of 2018.
Zacks Rank & Stocks to Consider
JAKKS Pacific, which shares the same space as Mattel (MAT - Free Report) , currently carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the industry are Hasbro (HAS - Free Report) — presently sporting a Zacks Rank #1 (Strong Buy), and Glu Mobile (GLUU - Free Report) — currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hasbro and Glu Mobile’s long-term earnings are likely to increase 10.7% and 15%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>