JAKKS Pacific, Inc. JAKK posted impressive results in the second quarter of 2022, with earnings and revenue exceeding the Zacks consensus estimate. The measures have increased year on year.

Following the results, the company’s shares jumped 34.7% in the after-hours trading session on July 27. During the quarter, the company benefited from robust demand for its products. The company continues to see strong demand for its core toy businesses, particularly Disney’s Encanto and Sega’s Sonic the Hedgehog. Despite supply chain headwinds, the company reported its first profitable second quarter in a decade.

Stephen Berman, President and CEO of JAKKS Pacific, said, “We are excited to continue to delight our consumers with a terrific offering across our toy, consumer and Halloween product lines, both on-shelf. and online, and in the United States. and internationally. »

Second Quarter Earnings and Revenues

During the second quarter, the company reported adjusted earnings of $1.98 per share against Zacks’ consensus estimate of a loss of 73 cents. In the prior year quarter, the company posted an adjusted loss of 44 cents per share.

Quarterly revenue of $220.4 million exceeded the consensus mark of $145 million by 52.1%. Revenue increased 96.2% year over year. The company’s results benefited from a strong increase in shipments. In the first half of 2022, company shipments topped $300 million for the first time in company history.

Net sales of the company’s Toys/Consumer Products segment increased 82.6% globally on a year-on-year basis, while sales of the Costumes segment increased 132.2% year-on-year. ‘other. Sales for the Action Play and Dolls businesses increased by 89.4% and 107.4%, respectively, on a yearly basis.

JAKKS Pacific, Inc. Price, Consensus, and EPS Surprise

JAKKS Pacific, Inc. price-consensus-eps-surprise-chart | Quote from JAKKS Pacific, Inc.

Operating Highlights

In the reported quarter, gross margin was 27.6%, down 77 basis points (bps) from the prior year quarter. The decline was primarily caused by an increase in inbound freight spending. Adjusted EBITDA was $27.1 million in the quarter compared to $5 million in the prior year quarter.

Balance sheet

As of June 30, 2022, the Company’s cash and cash equivalents (including restricted cash) were $62.3 million, compared to $38.3 million as of June 30, 2021. Debt, portion not current account, net as of June 30, 2022, was $82.5 million compared to $95.7 million as of June 30, 2021.

Zacks ranking and key picks

JAKKS Pacific currently has a Zacks rank #4 (sell)

Some top-ranked stocks in the Consumer Discretionary sector are G-III Clothing Group, Ltd. GII, MGM Resorts International MGM and Bluegreen Vacations Holding Corporation BVH.

G-III Apparel sports a Zacks Rank #1 (Strong Buy). GIII has an earnings surprise for the last four quarters of 97.5% on average. The stock is down 27.1% over the past year. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks consensus estimate for GIII’s current year sales and EPS indicates growth of 13.8% and 8.2%, respectively, from reported levels in the prior year period .

MGM Resorts carries a Zacks Rank #2 (Buy). MGM has a four-quarter earnings surprise of 212.5%, on average. Shares of the company have fallen 22% over the past year.

Zacks consensus estimate for MGM’s current fiscal year sales and EPS suggests growth of 27.6% and 240.3%, respectively, over reported levels in the prior year period .

Bluegreen Vacations carries a No. 2 Zacks rank. BVH has a trailing four-quarter earnings surprise of 85.9% on average. The stock is up 44.3% over the past year.

Zacks consensus estimate for BVH’s current year sales and EPS indicate growth of 11.2% and 35.1%, respectively, from reported levels in the prior year period .

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