The 10-second takeaway
For the quarter ended June 30 (Q2), JAKKS Pacific whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
JAKKS Pacific chalked up revenue of $106.2 million. The seven analysts polled by S&P Capital IQ expected a top line of $147.0 million on the same basis. GAAP reported sales were 27% lower than the prior-year quarter's $145.4 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 -$0.94. The six earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. Non-GAAP EPS were -$0.94 for Q2 compared to $0.06 per share for the prior-year quarter. GAAP EPS were -$2.14 for Q2 versus $0.01 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 4.5%, much worse than the prior-year quarter. Operating margin was -41.7%, much worse than the prior-year quarter. Net margin was -44.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $320.7 million. On the bottom line, the average EPS estimate is $1.38.
Next year's average estimate for revenue is $620.2 million. The average EPS estimate is -$2.05.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 419 members out of 446 rating the stock outperform, and 27 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give JAKKS Pacific a green thumbs-up, and two 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 $10.67.
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