Toy maker JAKKS Pacific miss Q2 sales estimates

Overview

• JAKKS Pacific Q2 sales down 20% yr/yr, missing analyst expectations

• Adjusted EPS, net income, and EBITDA beat analyst estimates, per LSEG data

• Rest of World sales up 41%, offsetting US sales decline of 31%

Outlook

• Company focuses on financial resilience amid market challenges

• JAKKS sees opportunities despite external uncertainties

Result Drivers

• HIGHER IMPORT COSTS - US sales decline attributed to increased importation costs

• INTERNATIONAL SALES GROWTH - Rest of World sales up 41% driven by strong performance in Europe and Latin America

• NEW PRODUCT LAUNCHES - Improved gross margin due to better margins and volume from new product launches

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the toys & children's products peer group is "buy"

• Wall Street's median 12-month price target for JAKKS Pacific Inc is $36.50, about 43.1% above its July 23 closing price of $20.78

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nGNX97Lkfv