JAKKS Pacific surges 18% on strong Q1 earnings beat

Published 29/04/2025, 21:34
JAKKS Pacific surges 18% on strong Q1 earnings beat

Investing.com -- JAKKS Pacific , Inc. (NASDAQ:JAKK) saw its stock soar 18.4% after reporting first quarter earnings that significantly beat analyst expectations. The toy maker posted a narrower-than-expected loss and revenue that surpassed estimates, driven by strong demand for products related to recent film releases.

For Q1 2025, JAKKS reported an adjusted loss of $0.03 per share, compared to the analyst consensus for a loss of $1.31 per share. Revenue jumped 26% YoY to $113.3 million, well above estimates of $94.9 million.

The company’s gross margin improved substantially to 34.4% from 23.4% in Q1 2024, helped by better margins on new product launches and reduced inventory obsolescence expenses. Operating loss narrowed to $3.8 million from $21.3 million a year ago.

"We are happy to share our results after a strong start to the year at JAKKS. We’ve seen great consumer reaction year-to-date with solid consumer sales across major accounts and major markets," said Stephen Berman, Chairman and CEO of JAKKS Pacific.

North America sales rose to $92.2 million from $73.8 million last year, while international sales grew to $21.0 million from $16.3 million, led by over 100% growth in Europe.

The company maintained a strong liquidity position with cash and cash equivalents of $59.4 million as of March 31, 2025, up from $35.5 million a year ago. JAKKS also declared a quarterly dividend of $0.25 per share.

While noting some challenges in the U.S. market in April, management expressed confidence in the company’s global presence and financial strength to navigate uncertainties and pursue growth opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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