The Gory Details on JAKKS Pacific's Double Miss

JAKKS Pacific (Nasdaq: JAKK  ) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), JAKKS Pacific missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP loss per share grew. GAAP loss per share grew.

Margins shrank across the board.

Revenue details
JAKKS Pacific reported revenue of $133.5 million. The five analysts polled by S&P Capital IQ hoped for a top line of $146.5 million on the same basis. GAAP reported sales were 5.4% lower than the prior-year quarter's $141.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$1.24. The five earnings estimates compiled by S&P Capital IQ predicted -$0.13 per share. Non-GAAP EPS were -$1.24 for Q4 against -$0.72 per share for the prior-year quarter. GAAP EPS were -$5.45 for Q4 versus -$0.91 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 23.7%, 260 basis points worse than the prior-year quarter. Operating margin was -23.4%, much worse than the prior-year quarter. Net margin was -89.5%, much worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $74.6 million. On the bottom line, the average EPS estimate is -$0.82.

Next year's average estimate for revenue is $686.8 million. The average EPS estimate is $0.65.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 422 members out of 447 rating the stock outperform, and 25 members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 118 give JAKKS Pacific a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on JAKKS Pacific is hold, with an average price target of $14.25.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere


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8/29/2014 3:59 PM
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