JAKK Earnings Prediction
The chart below shows how JAKK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, JAKK sees a -0.01% change in stock price 10 days leading up to the earnings, and a +0.38% change 10 days following the report. On the earnings day itself, the stock moves by +0.14%. This data can give you a slight idea of what to expect for the next quarter's release.
JAKK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
130.74M
2.63%
-59.35%
Gross Margin
27.10%
2.61%
-19.85%
Operating Margin
-11.26%
-6.48%
-153.19%
Net Margin
-6.97%
-18.29%
-142.89%
EPS
-0.83
-25.89%
-117.89%
No Data Available
JAKK Earnings Analysis
JAKKS Pacific Inc Corporation (JAKK.O) Earnings Conference Call
Positive
Toy Sales Growth: JAKKS Pacific experienced a 4.8% growth in toy and consumer products in the second half of 2024 compared to 2023, indicating positive momentum going into 2025.
Market Leadership Resilience: The company increased its U.S. market leadership position by a couple of points, despite a slight decline in overall sales, showcasing resilience in a challenging market.
Global Disguise Business Success: Internationally, the Disguise business reached an all-time high in 2024, demonstrating successful expansion efforts outside of North America.
Sales Volume Milestone: JAKKS achieved a significant milestone with over 75% of its 2024 sales volume sold on an FOB basis, enhancing logistics efficiency and customer value.
Gross Profit Improvement: The company reported a gross profit of $35.6 million for Q4, which was 5% better than the previous year, reflecting effective cost management despite challenges.
Strong Financial Foundation: JAKKS has no long-term debt, providing a strong financial foundation for future growth and stability.
Quarterly Dividend Announcement: The initiation of a quarterly dividend of $0.25 per share reflects the company's commitment to returning value to shareholders and maintaining a strong cash position.
Latin America Sales Growth: Sales in Latin America grew by over 19%, reaching $38 million for the full year, highlighting successful market penetration in the region.
Product Launch Optimism: The company is optimistic about upcoming product launches tied to popular franchises like Sonic and Disney, which are expected to drive sales growth in 2025.
Negative
Adjusted EPS Loss: JAKKS Pacific, Inc. reported an adjusted EPS loss of $-0.67, significantly missing expectations of $-0.05, indicating a disappointing financial performance for the quarter.
Toy and Consumer Products Decline: The company's toy and consumer products business experienced a decline of 1.8% for the full year, with all three divisions down in the 1% to 2% range, reflecting overall weakness in the market.
Costume Business Decline: The costume business saw a notable decline of 7.5% for the full year, attributed to softness in the U.S. market, which is concerning for future growth prospects.
North American Market Decline: Despite some growth in international markets, the North American segment was down 3% for both the quarter and the year, highlighting challenges in a key market.
Operating Margin Decline: The overall operating margin decreased to 5.7%, down 260 basis points from the previous year, indicating reduced profitability and operational efficiency.
Quarterly Adjusted EBITDA Loss: Adjusted EBITDA for the quarter was a loss of $10.2 million, which, while an improvement over the prior year, still reflects ongoing financial struggles for the company.
Increased Inventory Costs: The company faced higher costs of product due to increased inventory obsolescence, which has been a persistent issue throughout 2024, impacting profitability.
Increased Selling Expenses: Selling expenses increased to 5.8% of sales, up from 5.2% in the prior year, indicating rising costs associated with marketing and sales efforts.
G&A Expense Management Issues: General and administrative expenses were down year-over-year, but the overall G&A percentage worsened by 140 basis points compared to 2023, suggesting inefficiencies in managing overhead costs.
JAKK FAQs
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JAKK Earning Call Sentiment
JAKKS Pacific, Inc. (NASDAQ:JAKK) Q4 2024 Earnings Call Transcript
JAKK.O
-13.83%Positive
The earnings call reveals financial instability with an EPS miss, declining margins, and operating challenges. Despite strong Latin American sales and a new dividend, market volatility, supply chain issues, and customer dependency pose significant risks. The Q&A section highlighted management's vague responses to eCommerce opportunities, raising uncertainty. The negative sentiment is reinforced by declining EPS and margins, outweighing positive elements like the dividend initiation.
