Back to top

Image: Bigstock

JAKKS Pacific (JAKK) Q4 Earnings Miss Estimates, Revenues Top

Read MoreHide Full Article

JAKKS Pacific, Inc. JAKK reported fourth-quarter 2019 financial numbers wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. Following this release, the company’s shares decreased nearly 8% on Feb 19.

The company reported adjusted loss of 26 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents by 52.9%. However, the figure narrowed from the year-ago loss of 37 cents by 29.7%.

Revenues of $152.5 million beat the consensus mark of $149.9 million by 1.7%. Moreover, the top line increased 15.3% year over year. This uptick can be attributed to strong sales of Disney Frozen 2 and Disguise products.

Operating Highlights

In the reported quarter, gross margin was 30.4%, down 20 basis points (bps) from the prior-year level. Adjusted EBITDA came in at $3.3 million against a negative of $1.6 million reported in the prior-year quarter.

JAKKS Pacific, Inc. Price, Consensus and EPS Surprise

JAKKS Pacific, Inc. Price, Consensus and EPS Surprise

JAKKS Pacific, Inc. price-consensus-eps-surprise-chart | JAKKS Pacific, Inc. Quote

Balance Sheet

As of Dec 31, 2019, cash and cash equivalents amounted to $61.6 million compared with $53.3 million as of Dec 31, 2018. Inventory increased to $54.3 million from $53.9 million at 2018 end. Long-term debt as of Dec 31 totaled $175 million, up from $139.8 million at the end of 2018.

2019 Highlights

Net sales amounted to $598.6 million, up 5% year over year.

Adjusted loss per share for the year ended Dec 31, 2019 was reported at 73 cents compared with a loss of $1.25 in 2018.

Adjusted EBITDA for the full year was $18.9 million compared with $2.3 million in 2018.

Zacks Rank and Key Picks

JAKKS Pacific currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the Zacks Consumer Discretionary sector are Vista Outdoor Inc. (VSTO - Free Report) , YETI Holdings, Inc. (YETI - Free Report) and Hilton Grand Vacations Inc. (HGV - Free Report) . Vista Outdoor and YETI Holdings sport a Zacks Rank #1 while Hilton Grand Vacations carries a Zacks Rank #2 (Buy).

Vista Outdoor 2020 earnings are expected to surge 42.9%.

YETI Holdings has a three-five year expected EPS growth rate of 17.6%.

Hilton Grand Vacations’ 2020 earnings are expected to surge 44.1%.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Vista Outdoor Inc. (VSTO) - free report >>

Hilton Grand Vacations Inc. (HGV) - free report >>

YETI Holdings, Inc. (YETI) - free report >>