JAKKS Pacific Q1 Earnings and Revenues Surpass Estimates, Stock Up

Core Insights - JAKKS Pacific, Inc. reported first-quarter 2025 results with earnings and revenues exceeding Zacks Consensus Estimates, showing year-over-year growth [1][3] - The company experienced solid consumer demand across major markets and retail channels, with growth in Europe and Latin America despite challenges in the U.S. market [1] Financial Performance - The adjusted loss per share for the quarter was 3 cents, significantly better than the Zacks Consensus Estimate of a loss of 72 cents, and an improvement from a loss of $1.09 per share in the prior-year quarter [3] - Quarterly revenues reached $113.3 million, surpassing the consensus mark of $92 million by 22.8%, and increased by 26% year-over-year [3] - Net sales in the Toys/Consumer Products segment rose by 29.6% year-over-year to $107.4 million, exceeding the estimate of $85 million, while Costumes' net sales fell by 18.9% to $5.8 million, below the prediction of $7.2 million [4] Operating Highlights - Gross margin improved to 34.4% from 23.4% in the prior-year quarter, driven by higher margins on new product launches and reduced inventory obsolescence expenses [5] - Adjusted EBITDA for the quarter was $0.4 million, a decline from $17.2 million reported a year ago, and below the predicted $8.7 million [5] Balance Sheet - As of March 31, 2025, JAKKS had cash and cash equivalents of $59.2 million, an increase from $35.3 million as of March 31, 2024 [6] Stock Performance - Following the earnings report, JAKK's stock surged by 15.6% in after-hours trading [2]