Jakks Pacific Shares Fall on EarningsWednesday, April 23, 2014
Shares of Jakks Pacific Inc. fell 9 percent on Wednesday after the toy company reported higher revenue and a narrower loss in the first quarter.
After the markets closed on Tuesday, the Malibu company reported a net loss of $16.3 million (-74 cents a share), compared with a net loss of $27.5 million (-$1.26) the same period a year earlier. Net sales rose 5.7 percent to $82.5 million.
Analysts surveyed by Thomson Reuters on average expected Jakks to report loss of 76 cents a share on revenue of $76 million.
The company affirmed its previous full-year guidance with estimated net sales of between $633 million and $640 million and net income in the range of 30 cents to 40 cents a share. The Wall Street consensus is for full-year net income of 35 cents a share on higher-than-forecast net sales of more than $642 million.
Chief Executive Stephen Berman said strong sellers during the quarter included dolls, products for Disney-licensed "Frozen" and Pirate Fairies lines, and of wagons and similar products for preschoolers.
"Our first quarter results were gratifying and bode well for the balance of the year," Berman said.
Shares on Wednesday closed down 86 cents to $8.31 on the Nasdaq.