Zacks Investment Research upgraded shares of JAKKS Pacific (NASDAQ:JAKK) from a sell rating to a hold rating in a research note published on Monday morning.
According to Zacks, “JAKKS Pacific’s adjusted loss of 61 cents per share was wider than the Zacks Consensus Estimate of a loss of 11 cents and the year-ago quarter’s loss of 47 cents. Net sales in the fourth quarter totaled $136.6 million, lagging the consensus mark by 12.4% and falling 18.2% year over year. The challenging industry scenario for traditional toymakers has affected JAKKS Pacific’s fourth-quarter results. Tighter retail inventory management and the recent Toys ‘R’ Us bankruptcy filing added to the woes. Notably, the company’s earnings have been under pressure, incurring losses in nine of the 12 trailing quarters. Rising costs, adverse forex translations, age compression and the shift to alternative modes of entertainment remain threats to the top line. Consequently, shares of the company have underperformed its industry in the past year.”
Separately, BMO Capital Markets reiterated a market perform rating and issued a $2.50 price target (down previously from $3.50) on shares of JAKKS Pacific in a research report on Friday, February 23rd. One equities research analyst has rated the stock with a sell rating and five have issued a hold rating to the company. JAKKS Pacific presently has an average rating of Hold and an average price target of $2.89.
JAKKS Pacific (NASDAQ:JAKK) last released its quarterly earnings results on Thursday, February 22nd. The company reported ($0.61) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.11) by ($0.50). The company had revenue of $136.63 million during the quarter, compared to analysts’ expectations of $155.74 million. JAKKS Pacific had a negative return on equity of 22.00% and a negative net margin of 13.55%. The company’s revenue was down 18.2% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.47) EPS. equities research analysts anticipate that JAKKS Pacific will post 0.14 earnings per share for the current fiscal year.
Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Spark Investment Management LLC purchased a new position in JAKKS Pacific in the fourth quarter worth about $114,000. Wells Fargo & Company MN grew its position in JAKKS Pacific by 20,020.5% in the third quarter. Wells Fargo & Company MN now owns 51,911 shares of the company’s stock worth $155,000 after acquiring an additional 51,653 shares in the last quarter. Virtu Financial LLC purchased a new position in JAKKS Pacific in the fourth quarter worth about $149,000. Goldman Sachs Group Inc. lifted its stake in JAKKS Pacific by 273.2% in the second quarter. Goldman Sachs Group Inc. now owns 91,550 shares of the company’s stock worth $366,000 after purchasing an additional 67,020 shares during the last quarter. Finally, California Public Employees Retirement System lifted its stake in JAKKS Pacific by 0.6% in the second quarter. California Public Employees Retirement System now owns 218,868 shares of the company’s stock worth $875,000 after purchasing an additional 1,400 shares during the last quarter. Institutional investors own 48.11% of the company’s stock.
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About JAKKS Pacific
JAKKS Pacific, Inc is a multi-line, multi-brand toy company. The Company designs, produces, markets and distributes toys and related products, pet toys, consumables and related products, electronics and related products, kids indoor and outdoor furniture, and other consumer products. The Company operates through two business segments: traditional toys and electronics, and role play, novelty and seasonal toys.
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