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Jakks (JAKK) Down 11.3% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Jakks Pacific (JAKK - Free Report) . Shares have lost about 11.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Jakks due for a breakout? 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's Q3 Earnings & Revenues Surpass Estimates

JAKKS Pacific 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.

JAKK’s Q3 Earnings and Revenues

In the quarter, the company reported adjusted earnings per share of $4.79, beating the Zacks Consensus Estimate of $3.55. In the prior-year quarter, JAKK reported adjusted earnings of $4.75 per share.

Quarterly revenues of $321.6 million beat the consensus mark of $303 million. The top line also increased 4% on a year-over-year basis.

Net sales in the Toys/Consumer Products segment increased 7.4% year over year to $264.3 million.

Costumes net sales declined 10.1% year over year to $57.3 million.

Operating Highlights of JAKK

In the reported quarter, the gross margin reached 33.8%, down 70 basis points from the prior-year level.

Adjusted EBITDA amounted to $74.4 million compared with $67.1 million a year ago.

Balance Sheet of JAKK

As of Sept. 30, 2024, the company’s cash and cash equivalents (including restricted cash) were $22.3 million compared with $96.3 million as of Sept. 30, 2023.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

Currently, Jakks has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Jakks has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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