Lower Sales Hurts Jakks’ ProfitTuesday, October 18, 2011
Jakks Pacific Inc. on Tuesday said its third quarter earnings fell 14 percent on lower sales of its toys, missing Wall Street expectations.
The Malibu company reported net income of $34.8 million ($1.10 per share), compared with $40.4 million ($1.23) in the same period a year earlier. Revenue fell 5 percent to $332 million.
Analysts surveyed by Thomson Reuters on average had expected per-share profit of $1.24 a share on revenue of more than $356 million.
Surveys of retailers indicate that they expect slightly better holiday sales, but are cautiously keeping inventories low. However, Jakks Chief Executive Stephen Berman remained upbeat, noting that several new products including its "I Am T-Pain" microphone, Singing and Storytelling Belle doll and Cabbage Patch Kids dolls have made some industry "hot toy" lists for this season.
“Sales in the third quarter were in line with our expectations and several new toys from our portfolio are already garnering industry and retailer accolades,” Berman said in a statement. “We are also excited to expand our portfolio with our recently completed acquisition of Moose Mountain Toymakers.”
For the year, the company continues to expect earnings of $1.32 to $1.35 per share on sales of $770 million to $775 million. The Wall Street consensus is for $1.42 per share profit on revenue $778 million.
Shares were down 12 cents, or less than 1 percent, to $18.23 in midday trading Tuesday on the Nasdaq.