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JAKKS Pacific's (JAKK) Q2 Earnings & Revenues Lag Estimates

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JAKKS Pacific, Inc. (JAKK - Free Report) 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 partnerships worldwide.

Q2 Earnings and Revenues

In the quarter, the company reported adjusted earnings per share of 65 cents, missing the Zacks Consensus Estimate of 86 cents. In the prior-year quarter, JAKK reported adjusted earnings of $1.26.

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

Quarterly revenues of $148.6 million missed the consensus mark of $162 million. Moreover, the top line declined 11% on a year-over-year basis.

Net sales in the Toys/Consumer Products segment decreased 11.3% year over year to $104.6 million. Our estimate was $118 million.

Costumes net sales declined 10.1% year over year to $44 million. Our projection was $44.5 million.

Operating Highlights

In the reported quarter, the gross margin reached 32%, up 130 basis points from the prior-year level. We predicted the metric to be 26.8%.

Adjusted EBITDA amounted to $12.3 million compared with $20.7 million a year ago.

Balance Sheet

As of Jun 30, 2024, the company’s cash and cash equivalents (including restricted cash) were $17.9 million compared with $32.4 million as of Jun 30, 2023.

Zacks Rank

JAKKS Pacific currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Consumer Discretionary Releases

Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital.

The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America, Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. The company’s efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.

Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.

The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. For 2024, management continues to expect net sales to be comparable with the prior year’s levels at cc . It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.

American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, missing the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.

The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to the consumers of Canada. The bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.

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