Shares of JAKKS Pacific, Inc. (JAKK) have rallied 52.1% in the past six months, significantly outperforming 15.5% growth registered by the Zacks Toys - Games - Hobbies industry. JAKK also outpaced the broader Consumer Discretionary  sector and the S&P 500 index's 13.8% and 10.3% growth, respectively, during the same period.The company is benefiting from retail expansion and product launches. Its focus on brand collaborations and licensing partnerships supports growth. The company’s efforts to diversify its ...

Core Insights - JAKKS Pacific, Inc. reported its Q3 earnings on October 30, highlighting its role as a toy producer and distributor with licensed brand sales from companies like Disney and Nintendo [1] Financial Performance - The company’s Q3 earnings report was released after market hours, indicating a focus on transparency and timely communication with investors [1] Market Position - JAKKS Pacific operates in the toy industry, leveraging partnerships with major brands to enhance its product offerings and market reach [1]

Financial Performance - Q3 2024 net sales were $321.6 million, a year-over-year increase of 4%[2] - Toys/Consumer Products net sales were $264.3 million, a year-over-year increase of 7%[2] - Costumes net sales were $57.3 million, a year-over-year decrease of 10%[2] - Operating income was $68.1 million, representing 21.2% of net sales, up from 20.1% in Q3 2023[2] - Net income attributable to common stockholders was $52.3 million or $4.64 per diluted share, compared to $47.8 million or $4.53 per diluted share in Q3 2023[2] - Year-to-date adjusted net income was $50.0 million ($4.50 per diluted share), down from $59.4 million ($5.66 per diluted share) in the first nine months of 2023[5] - Net income attributable to JAKKS Pacific, Inc. increased by 9% to $52.3 million in Q3 2024 compared to $48.1 million in Q3 2023[16] - The company experienced a 12% decrease in net income for the nine months ended September 30, 2024, totaling $43.3 million compared to $48.9 million in the same period of 2023[16] - TTM net income decreased to $32,441,000 from $87,094,000, a decline of $54,653,000[19] Margins and Expenses - Gross margin was 33.8%, down 70 basis points compared to Q3 2023[2] - Adjusted EBITDA for Q3 2024 was $74.4 million, up from $67.1 million in Q3 2023[2] - Gross profit margin decreased to 33.8% in Q3 2024 from 34.5% in Q3 2023, reflecting a decline in gross profit to $108.8 million[17] - Direct selling expenses decreased by 29% to $7.6 million in Q3 2024, compared to $10.7 million in Q3 2023[16] - General and administrative expenses increased by 9% to $100.9 million for the nine months ended September 30, 2024, compared to $92.5 million in the same period of 2023[16] - The company reported a decrease in royalty expenses by 2% to $50.0 million in Q3 2024 compared to $51.1 million in Q3 2023[16] - Interest expense decreased significantly by 62% to $539,000 in Q3 2024 from $1.4 million in Q3 2023[18] - Interest expense decreased to $1,648,000 from $8,035,000, a reduction of $6,387,000[19] - The overall TTM Adjusted EBITDA margin decreased to 8.5%, down 190 basis points from 10.4%[19] Cash and Inventory - Cash and cash equivalents totaled $22.3 million as of September 30, 2024, down from $96.4 million a year earlier[6] - Inventory was $63.5 million, compared to $68.8 million as of September 30, 2023[6] Earnings Per Share - Earnings per share (EPS) for Q3 2024 was $4.78, slightly up from $4.77 in Q3 2023[16] - Adjusted earnings per share (diluted) decreased to $4.79 from $5.66, a decline of $0.87[20] Regional Sales Performance - Net sales in the United States for Q3 2023 were $255,278,000, a 4.2% increase year-over-year, but a 3.5% decline compared to the previous quarter[21] - Latin America showed significant growth with Q3 2023 sales of $22,632,000, a 47.7% increase year-over-year[21] - Total net sales for Q3 2023 were $321,606,000, reflecting a 3.8% increase from Q3 2022[21] - The company reported a 22.8% increase in year-to-date sales for Latin America compared to the previous year[21] Other Financial Impacts - The company experienced a loss from joint ventures totaling $565,000, impacting overall profitability[20] - TTM Adjusted EBITDA fell to $58,490,000, down 22% from $74,549,000[19]

JAKKS Pacific, Inc. (JAKK) reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate after missing in the preceding three quarters.The company reported impressive third-quarter results, marking JAKK’s strongest shipping quarter in a decade for its U.S. business. This was largely attributed to its longstanding focus on the FOB selling model. Management emphasized that the yearly plan remains on track to meet its goals.Find the latest EPS estimates and surprises on Z ...

Company Performance - Jakks Pacific (JAKK) reported quarterly earnings of $4.79 per share, exceeding the Zacks Consensus Estimate of $3.55 per share, and showing a slight increase from $4.75 per share a year ago, resulting in an earnings surprise of 34.93% [1] - The company posted revenues of $321.61 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5.99%, compared to $309.74 million in the same quarter last year [2] - Over the last four quarters, Jakks has only surpassed consensus EPS estimates once and has topped consensus revenue estimates just once [2] Stock Outlook - Jakks shares have declined approximately 22.8% since the beginning of the year, contrasting with the S&P 500's gain of 22.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $134.28 million, and for the current fiscal year, it is $3.07 on revenues of $676.41 million [7] Industry Context - The Toys - Games - Hobbies industry, to which Jakks belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Jakks' stock performance [5]

SANTA MONICA, Calif., Oct. 30, 2024 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (NASDAQ: JAKK) today reported financial results for the third quarter and nine months ended September 30, 2024. Third Quarter 2024 Overview Net sales were $321.6 million, a year-over-year increase of 4% Toys/Consumer Products net sales were $264.3 million, a year-over-year increase of 7% Toys/Consumer Products net sales year-to-date are $451.8 million, a year-over-year decrease of 2%    Costumes net sales were $57.3 million, a year ...

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

The Zacks Consensus Estimate for JAKKS Pacific, Inc.'s (JAKK) 2024 and 2025 earnings per share (EPS) has dropped by 14.3% and 10.3%, respectively, in the past 60 days. The downward revision in earnings estimates indicates analysts' decreasing confidence in the stock. The toy and consumer products company also missed the Zacks Earnings Estimates in the trailing three quarters. Shares of JAKKS Pacific have declined 28.8% so far this year against the Zacks Toys - Games – Hobbies industry's 5.4% gain. The compa ...

Financial Performance - Net sales for Q2 2024 were $148.6 million, a decrease of 11% from $166.9 million in Q2 2023[9] - Gross profit for Q2 2024 was $47.6 million, down from $51.2 million in Q2 2023, resulting in a gross margin of 32%[9] - Net income for Q2 2024 was $5.3 million, compared to $6.2 million in Q2 2023, reflecting a decrease of 14.8%[9] - The company reported a basic earnings per share of $0.49 for Q2 2024, down from $0.62 in Q2 2023[9] - Net income attributable to common stockholders for the three months ended June 30, 2024, was $5.266 million, a decrease from $6.455 million for the same period in 2023, representing a decline of 18.3%[52] - Basic earnings per share available to common stockholders for the three months ended June 30, 2024, was $0.49, down from $0.62 in the prior year, reflecting a decrease of 20.97%[52] - The company reported a net loss attributable to common stockholders of $7.909 million for the six months ended June 30, 2024, compared to a profit of $402,000 for the same period in 2023[52] - For the three months ended June 30, 2024, the net income was $5.266 million, a decrease of 14.8% compared to $6.182 million in the same period of 2023[70] - The comprehensive income for the three months ended June 30, 2024, was $5.150 million, down 29.5% from $7.311 million in the same period of 2023[70] Assets and Liabilities - Total current assets decreased to $235.7 million as of June 30, 2024, from $255.4 million at the end of 2023[5] - Total liabilities decreased to $182.4 million as of June 30, 2024, from $202.8 million at the end of 2023[6] - Accounts receivable increased to $140.0 million as of June 30, 2024, from $123.8 million at the end of 2023[5] - The accumulated deficit increased to $(82.9) million as of June 30, 2024, compared to $(73.6) million at the end of 2023[10] - Total stockholders' equity increased to $195.9 million as of June 30, 2024, from $190.1 million at the end of 2023[7] - The company’s long-lived assets in the United States were valued at $19.24 million as of June 30, 2024, down from $21.21 million as of December 31, 2023[25] - The Company’s net accounts receivable increased to $140.0 million as of June 30, 2024, from $123.8 million as of December 31, 2023, representing a growth of 13.3%[35] Cash Flow and Financing - Cash flows from operating activities for the six months ended June 30, 2024, resulted in a net cash used of $27.7 million, compared to a net cash provided of $20.8 million for the same period in 2023[12] - The company reported a total adjustment of $(18.7) million in operating activities for the six months ended June 30, 2024[12] - The company incurred share-based compensation expenses of $5.1 million for the six months ended June 30, 2024, up from $3.9 million for the same period in 2023[12] - The company repurchased common stock for employee tax withholding amounting to $5.1 million during the six months ended June 30, 2024[12] - The cash, cash equivalents, and restricted cash at the end of the period were $17.9 million, down from $32.4 million at the end of June 30, 2023[12] - Working capital decreased by $32.2 million to $73.9 million as of June 30, 2024, primarily due to a $20.0 million cash payment for the redemption of outstanding preferred stock[106] - Financing activities used net cash of $20.1 million for the six months ended June 30, 2024, significantly lower than $70.4 million in the prior year, primarily due to preferred stock redemption[109] Segment Performance - Net sales for the Toys/Consumer Products segment decreased to $104.57 million in Q2 2024 from $117.93 million in Q2 2023, representing a decline of 11.5%[22] - Net sales for the Costumes segment decreased to $44.05 million in Q2 2024 from $48.99 million in Q2 2023, a decline of 10.0%[22] - Operating income from the Toys/Consumer Products segment fell to $9.71 million in Q2 2024 from $15.69 million in Q2 2023, a decrease of 38.1%[22] - The company reported a loss of $2.07 million from the Costumes segment in Q2 2024, compared to an income of $0.76 million in Q2 2023[22] - Net sales for the Toys/Consumer Products segment decreased by $28.3 million, or 13.1%, to $187.5 million for the six months ended June 30, 2024, compared to $215.8 million in the prior year[100] - Cost of sales for the Toys/Consumer Products segment was $132.6 million, or 70.7% of related net sales, for the six months ended June 30, 2024, compared to $146.3 million, or 67.8%, in the prior year[100] Tax and Compliance - The Company’s income tax expense for the three months ended June 30, 2024, was $2.3 million, reflecting an effective tax rate of 30.2%, up from $1.5 million and 19.3% in the same period of 2023[50] - The Company reported an income tax benefit of $4.4 million for the six months ended June 30, 2024, with an effective tax (benefit) rate of 33.2%[51] - The effective tax rate increased to 30.2% for the three months ended June 30, 2024, up from 19.3% in the prior year, primarily due to non-deductible compensation and foreign inclusions[99] - As of June 30, 2024, the Company was in compliance with the financial covenants under the JPMorgan ABL Credit Agreement[49] Strategic Initiatives - The company plans to continue focusing on new product development and market expansion strategies in the upcoming quarters[9] - The company plans to adopt ASU 2023-07 in the fourth quarter of 2024, which will enhance reportable segment disclosures[18] - The company is currently evaluating the impact of ASU 2023-09 on its financial statements, effective for fiscal years beginning after December 15, 2024[19] Other Notable Events - The company redeemed all outstanding shares of Series A Senior Preferred Stock on March 11, 2024, for a total of $20 million in cash and 571,295 common shares valued at $15 million[58] - The company dissolved its joint venture with Meisheng Culture & Creative Corp. Ltd. on May 10, 2023, which previously accounted for 51% ownership[68] - There were no goodwill impairments reported for the six months ended June 30, 2024, as the fair values of the reporting units were determined to be above their carrying amounts[69] - The company has not entered into foreign currency hedging transactions, exposing it to exchange rate fluctuations[118]

JAKKS Pacific, Inc. (JAKK) reported second-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Both top and bottom lines missed the consensus estimate for the third straight quarter. Stephen Berman, CEO of JAKKS Pacific, expressed satisfaction with the company's progress and readiness for new product launches in the latter half of the year. Key releases, Moana 2 in November and Sonic the Hedgehog 3 in December, are set to be major highlights, backed by strong retail partne ...