JAKKS Pacific (NASDAQ:JAKK) Releases Earnings Results, Beats Estimates By $0.27 EPS

JAKKS Pacific (NASDAQ:JAKK) released its quarterly earnings data on Thursday. The company reported ($0.17) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.44) by $0.27, FiscalAI reports. JAKKS Pacific had a net margin of 1.41% and a return on equity of 3.25%. The firm had revenue of $106.68 million for the quarter, compared to the consensus estimate of $103.80 million.

Here are the key takeaways from JAKKS Pacific’s conference call:

• Q1 net sales were $170 million, down 6% year-over-year, led by a 16% decline in North America to $78 million despite continued strength in FOB shipments (~70% of NA volume).
• International revenue grew 38% to $29 million, with EMEA delivering its best quarter since 2015 supported by expanded regional distribution capabilities.
• Gross margin remained strong at 33.4% (down ~100 bps) driven by higher-margin new products and fewer low-margin closeouts.
• The company recorded a quarterly adjusted EBITDA loss of $0.37 million (versus a $0.35 million gain a year ago) and an adjusted EPS loss of $0.17, reflecting softer margin dollars despite the margin percentage.
• Management is investing in a large-scale anime/manga/VTuber platform launching in 2027 (premium collectibles, DTC, live events) and ended Q1 with $64 million cash plus a $0.25 per?share Q2 dividend approved by the board.

JAKKS Pacific Stock Up 10.6%

Shares of NASDAQ JAKK traded up $2.30 during midday trading on Friday, reaching $24.06. 160,467 shares of the company’s stock traded hands, compared to its average volume of 48,978. The company has a market cap of $275.25 million, a price-to-earnings ratio of 28.31 and a beta of 1.50. JAKKS Pacific has a one year low of $14.86 and a one year high of $24.12. The stock’s 50 day simple moving average is $21.11 and its 200-day simple moving average is $18.81.

JAKKS Pacific Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 29th. Stockholders of record on Friday, May 29th will be paid a dividend of $0.25 per share. The ex-dividend date is Friday, May 29th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 4.2%. JAKKS Pacific’s dividend payout ratio (DPR) is currently 117.65%.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on JAKK shares. Wall Street Zen upgraded shares of JAKKS Pacific from a “hold” rating to a “buy” rating in a research note on Saturday, March 7th. Zacks Research upgraded shares of JAKKS Pacific from a “strong sell” rating to a “hold” rating in a research note on Monday, March 9th. Two research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company presently has an average rating of “Hold”.

Institutional Investors Weigh In On JAKKS Pacific

Several institutional investors have recently bought and sold shares of the company. Invesco Ltd. boosted its stake in JAKKS Pacific by 9.3% in the fourth quarter. Invesco Ltd. now owns 26,772 shares of the company’s stock valued at $452,000 after acquiring an additional 2,274 shares in the last quarter. Corient Private Wealth LLC acquired a new stake in JAKKS Pacific in the fourth quarter valued at approximately $924,000. Sandia Investment Management LP boosted its stake in JAKKS Pacific by 47.5% in the fourth quarter. Sandia Investment Management LP now owns 16,236 shares of the company’s stock valued at $274,000 after acquiring an additional 5,225 shares in the last quarter. Kovack Advisors Inc. boosted its stake in JAKKS Pacific by 56.7% in the fourth quarter. Kovack Advisors Inc. now owns 23,246 shares of the company’s stock valued at $392,000 after acquiring an additional 8,408 shares in the last quarter. Finally, Corsair Capital Management L.P. boosted its stake in JAKKS Pacific by 13.7% in the fourth quarter. Corsair Capital Management L.P. now owns 19,930 shares of the company’s stock valued at $336,000 after acquiring an additional 2,404 shares in the last quarter. 44.38% of the stock is currently owned by institutional investors and hedge funds.

More JAKKS Pacific News

Here are the key news stories impacting JAKKS Pacific this week:

• Positive Sentiment: Q1 results beat expectations: JAKK reported adjusted EPS of ($0.17) vs. consensus of ($0.44) and revenue of $106.7M, modestly above estimates — this EPS/revenue surprise is the primary near-term catalyst. MarketBeat Q1 Summary
• Positive Sentiment: Dividend reinstated: the company declared a $0.25 per-share quarterly dividend (ex-dividend/record/payable dates announced) implying a ~4.4% yield — this raises the stock’s income appeal for yield-seeking investors.
• Positive Sentiment: Balance-sheet/cash flow signals: management reported healthy cash and a reduction in total liabilities year-over-year, which reduces financing risk and supports the dividend and working-capital needs. Quiver Quant recap
• Neutral Sentiment: Earnings call transcript available for review — useful for investors wanting management’s commentary on demand, channel inventory and holiday cadence. Earnings Call Transcript
• Neutral Sentiment: Official press release and slide deck are posted — appropriate for those doing a deeper read of segment and geographic performance. GlobeNewswire Release
• Negative Sentiment: Margin pressure and operating loss: cost of sales and lower gross margin drove an operating loss and a small net loss for Q1 — these profitability headwinds are why the company remains unprofitable on a GAAP basis and represent the primary near-term risk to the stock. Zacks report

JAKKS Pacific Company Profile

JAKKS Pacific, Inc (NASDAQ: JAKK) is a Los Angeles–based company that designs, develops and markets a broad range of toys and consumer products. Since its founding in 1995 by industry veteran Jack Friedman, the company has built a diversified portfolio spanning three primary segments: Toys, Consumer Electronics & Seasonal, and Kids Furniture & Accessories. JAKKS Pacific specializes in both licensed and proprietary brands, collaborating with major entertainment and sports licensors to bring popular characters and franchises to market.

The company’s Toys segment includes action figures, dolls, role-play items, collectible toys and outdoor activity products.