The 10-second takeaway
For the quarter ended March 31 (Q1), JAKKS Pacific beat expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP loss per share increased.
Gross margin grew, while operating margin and net margin contracted.
JAKKS Pacific logged revenue of $73.4 million. The six analysts polled by S&P Capital IQ anticipated sales of $68.8 million on the same basis. GAAP reported sales were 1.5% higher than the prior-year quarter's $72.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.62. The four earnings estimates compiled by S&P Capital IQ predicted -$0.61 per share. GAAP EPS were -$0.62 for Q1, compared to -$0.39 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.8%, 20 basis points better than the prior-year quarter. Operating margin was -26.4%, 600 basis points worse than the prior-year quarter. Net margin was -21.8%, 720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $136.2 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $727.8 million. The average EPS estimate is $1.07.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 421 rating the stock outperform and 24 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 116 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 $18.33.
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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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.