Jakks Shares Fall on EarningsWednesday, July 23, 2014
Shares of Malibu toy firm Jakks Pacific fell nearly 14 percent Wednesday after the firm reported a deeper loss than analysts expected.
Jakks Pacific reported a net loss of $9.1 million (43 cents a share) for the quarter ending June 30, compared with $46.9 million for the same period a year ago. Revenue increased 17 percent to $124 million.
Analysts had expected a loss of 28 cents a share.
Company Chief Executive Stephen Berman said in a statement that improved sales were largely driven by the popularity of licensed products tied to the popular Disney movie “Frozen,” although he also acknowledged that enthusiasm for Frozen-products cut into sales of other toy lines.
Shares of Jakks Pacific fell $1.15 to close Wednesday at $7.19 on the Nasdaq.