JAKKS Pacific Earnings Preview

Watch JAKKS Pacific's (Nasdaq: JAKK  ) earnings report to see whether it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Monday. Jakks Pacific is engaged in the development, production and marketing of consumer products, including toys and related products, stationery and writing instruments, and pet toys and related products.

What analysts say:

  • Buy, sell, or hold? Analysts generally think investors should hang on to JAKKS Pacific, with half rating the stock a hold. Analysts don't like JAKKS Pacific as much as competitor Kid Brands overall. Three out of four analysts rate Kid Brands a buy compared with three of eight for JAKKS Pacific. Analysts still rate the stock a Hold, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $129.1 million in revenue this quarter. That would represent a rise of 4.7% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of 15 cents per share. Estimates range from 10 cents to 20 cents.

What our community says:
CAPS All Stars are solidly behind the stock with 96.7% awarding it an "outperform" rating. The community at large agrees with the All Stars with 94.7% granting it a rating of "outperform." Fools are gung-ho about JAKKS Pacific and haven't been shy with their opinions lately, logging 173 posts in the past 30 days. Despite the majority sentiment in favor of JAKKS Pacific, the stock has a middling CAPS rating of three out of five stars.

Management:
JAKKS Pacific's income has fallen year over year by an average of more than twofold. Revenue has fallen for the past three quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

33.6%

33.1%

31.8%

35.1%

Operating Margin

-20.4%

5.5%

14.8%

1%

Net Margin

-14.6%

4.5%

11.6%

2.4%

For all our JAKKS Pacific-specific analysis, including earnings and beyond, add JAKKS Pacific to My Watchlist.

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