The 10-second takeaway
For the quarter ended June 30 (Q2), JAKKS Pacific beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted significantly.
Margins contracted across the board.
JAKKS Pacific reported revenue of $145.4 million. The six analysts polled by S&P Capital IQ expected revenue of $137.3 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $131.9 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 $0.06. The five earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS of $0.01 for Q2 were 94% lower than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.0%, 20 basis points worse than the prior-year quarter. Operating margin was 0.1%, 140 basis points worse than the prior-year quarter. Net margin was 0.1%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $354.2 million. On the bottom line, the average EPS estimate is $1.39.
Next year's average estimate for revenue is $735.2 million. The average EPS estimate is $1.10.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 422 members rating the stock outperform and 26 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give JAKKS Pacific a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on JAKKS Pacific is outperform, with an average price target of $21.60.
Can your retirement portfolio provide you with enough income to last? You'll need more than JAKKS Pacific. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add JAKKS Pacific to My Watchlist.
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.
More from The Motley Fool
3 Stocks Hitting New 52-Week Lows You Can Buy Right Now
China Mobile, JAKKS Pacific, and Sogou are trading at their lowest levels of 2017, but better times are waiting in 2018.
The End of Toys R Us Won't Be the End of Hasbro, Mattel, or JAKKS
The toy store may be buckling financially with $400 million in debt to pay back next year, but the companies that stock the shelves aren't bowing out.
Has Sears Holdings Really Confirmed Kmart Lost a Major Toy Vendor?
The retailer put out a statement to quell nervous suppliers and investors, but it may do more harm than good.