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Why Is Jakks (JAKK) Up 0.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Jakks Pacific (JAKK - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jakks due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
JAKKS Pacific Q2 Earnings & Net Sales Lag Estimates
JAKKS Pacific 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.
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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Jakks has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Jakks has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Jakks is part of the Zacks Toys - Games - Hobbies industry. Over the past month, Hasbro (HAS - Free Report) , a stock from the same industry, has gained 4.7%. The company reported its results for the quarter ended June 2024 more than a month ago.
Hasbro reported revenues of $995.3 million in the last reported quarter, representing a year-over-year change of -17.7%. EPS of $1.22 for the same period compares with $0.49 a year ago.
For the current quarter, Hasbro is expected to post earnings of $1.30 per share, indicating a change of -20.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Hasbro. Also, the stock has a VGM Score of A.
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Why Is Jakks (JAKK) Up 0.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Jakks Pacific (JAKK - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jakks due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
JAKKS Pacific Q2 Earnings & Net Sales Lag Estimates
JAKKS Pacific 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.
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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
At this time, Jakks has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Jakks has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Jakks is part of the Zacks Toys - Games - Hobbies industry. Over the past month, Hasbro (HAS - Free Report) , a stock from the same industry, has gained 4.7%. The company reported its results for the quarter ended June 2024 more than a month ago.
Hasbro reported revenues of $995.3 million in the last reported quarter, representing a year-over-year change of -17.7%. EPS of $1.22 for the same period compares with $0.49 a year ago.
For the current quarter, Hasbro is expected to post earnings of $1.30 per share, indicating a change of -20.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Hasbro. Also, the stock has a VGM Score of A.