We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
JAKKS Pacific (JAKK) Q1 Loss Wider Than Expected, Margin Down
Read MoreHide Full Article
JAKKS Pacific, Inc.’s (JAKK - Free Report) adjusted loss of 88 cents per share was wider than the Zacks Consensus Estimate of a loss of 60 cents but narrower than the year-ago quarter’s loss of $1.01.
Net sales in the first quarter totaled $93 million, surpassing the consensus mark of $87.7 million by 6%. However, the top line fell 1.4% year over year.
Notably, the company’s shares have lost 53.1% in the past year, underperforming the industry’s rally of 15.6%.
The challenging industry scenario for traditional toymakers have affected JAKKS Pacific’s results.
Tighter retail inventory management and the recent Toys ‘R’ Us bankruptcy filing added to woes.
Operating Highlights
Gross margin in the first quarter was 24.7%, down 710 basis points (bps) from the prior-year quarter. Gross margin was negatively impacted by anticipated contractual royalty shortfalls related to the recently announced liquidation of Toys R Us and higher royalties resulting from a shift in product mix.
Adjusted EBITDA was negative $14.6 million compared with negative $10.6 million in the prior-year quarter.
JAKKS Pacific, Inc. Price, Consensus and EPS Surprise
As of Mar 31, 2018, cash and cash equivalents were $46.8 million, compared with $65 million as of Dec 31, 2017. Inventory declined 7.6% year over year to $54 million in 2017.
Long-term debt as on Mar 31, 2018, totaled $134.7 million, up from $133.5 million at the end of 2017.
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
JAKKS Pacific (JAKK) Q1 Loss Wider Than Expected, Margin Down
JAKKS Pacific, Inc.’s (JAKK - Free Report) adjusted loss of 88 cents per share was wider than the Zacks Consensus Estimate of a loss of 60 cents but narrower than the year-ago quarter’s loss of $1.01.
Net sales in the first quarter totaled $93 million, surpassing the consensus mark of $87.7 million by 6%. However, the top line fell 1.4% year over year.
Notably, the company’s shares have lost 53.1% in the past year, underperforming the industry’s rally of 15.6%.
The challenging industry scenario for traditional toymakers have affected JAKKS Pacific’s results.
Tighter retail inventory management and the recent Toys ‘R’ Us bankruptcy filing added to woes.
Operating Highlights
Gross margin in the first quarter was 24.7%, down 710 basis points (bps) from the prior-year quarter. Gross margin was negatively impacted by anticipated contractual royalty shortfalls related to the recently announced liquidation of Toys R Us and higher royalties resulting from a shift in product mix.
Adjusted EBITDA was negative $14.6 million compared with negative $10.6 million in the prior-year quarter.
JAKKS Pacific, Inc. Price, Consensus and EPS Surprise
JAKKS Pacific, Inc. Price, Consensus and EPS Surprise | JAKKS Pacific, Inc. Quote
Balance Sheet
As of Mar 31, 2018, cash and cash equivalents were $46.8 million, compared with $65 million as of Dec 31, 2017. Inventory declined 7.6% year over year to $54 million in 2017.
Long-term debt as on Mar 31, 2018, totaled $134.7 million, up from $133.5 million at the end of 2017.
JAKKS Pacific, which shares space with Glu Mobile Inc. , Hasbro Inc. (HAS - Free Report) and Activision Blizzard, Inc. carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>