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.
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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.