What Does Wall Street See for JAKKS Pacific's Q2?

Seth Jayson, The Motley Fool
Updated

JAKKS Pacific (NAS: JAKK) is expected to report Q2 earnings on July 17. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict JAKKS Pacific's revenues will increase 4.1% and EPS will wither 31.3%.

The average estimate for revenue is $137.3 million. On the bottom line, the average EPS estimate is $0.11.


Revenue details
Last quarter, JAKKS Pacific reported revenue of $73.4 million. GAAP reported sales were 1.5% higher than the prior-year quarter's $72.3 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at -$0.62. GAAP EPS were -$0.62 for Q1 versus -$0.39 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 32.1%, 150 basis points worse than the prior-year quarter. Operating margin was -26.4%, 600 basis points worse than the prior-year quarter. Net margin was -21.8%, 720 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $735.2 million. The average EPS estimate is $1.10.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 422 members out of 448 rating the stock outperform, and 26 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give JAKKS Pacific a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on JAKKS Pacific is outperform, with an average price target of $18.33.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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