NASDAQ$JAKK

JAKKS Pacific Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

JAKKS Pacific's financial results for Q3 2020 were reported, showing substantial progress on improving profitability.

JAKKS Pacific reported a decrease in net sales by 14% to $242.3 million compared to the previous year, but net income attributable to common stockholders increased to $32.1 million. Excluding declines in Frozen and Disguise Halloween costumes, net sales were up 13% year-over-year. The company also highlighted strong liquidity and improved gross margins.

  • Net sales for Q3 2020 were $242.3 million, a 14% decrease compared to last year.
  • Excluding declines in Frozen and Disguise Halloween costumes, Q3 net sales increased by 13% year-over-year.
  • Gross margin improved to 30.8%, up from 28.9% due to disciplined cost control and improved inventory management.
  • Net income attributable to common stockholders rose to $32.1 million.

Headline financials

Total Revenue

$242M

Previous: $280M-13.5%
EPS (adj)

$4.76

Previous: $7.60-37.4%
Gross Margin

30.8%

Previous: 28.9%+6.6%
Capital Expenditures

-$6.17M

Previous: -$7.62M+19.1%
Free Cash Flow

$26.2M

Previous: $8.82M+197.1%
Net Income

$32.4M

Previous: $16.4M+96.9%
Operating Income

$37.5M

Previous: $35.7M+5.2%
Gross Profit

$74.6M

Previous: $80.9M-7.7%
Cash & Equivalents

$75.2M

Previous: $71M+5.9%
Total Assets

$408M

Previous: $480M-15.0%
Stock-Based Comp

$540K

Previous: $857K-37.0%

Revenue & EPS history

JAKKS · Revenue · Quarterly

$242M

Q3 2020-13.5%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

JAKKS · $310M total across 2 segments · Q3 2023

  • Toys/Consumer Products
    $246M
  • Costumes
    $63.7M

Forward guidance

The company expects continued progress on profitability despite difficult revenue comparisons and anticipates growth in sales and profitability in 2021.

Tailwinds

  • Good performances expected over the holiday season from new introductions from Disney Princess®.
  • Good performances expected over the holiday season from new introductions from Disney Frozen®.
  • Good performances expected over the holiday season from new introductions from Electronic Arts® APEX Legends™.
  • Good performances expected over the holiday season from new introductions from SEGA® Sonic the Hedgehog™.
  • Good performances expected over the holiday season from new introductions from Nintendo® Super Mario™.

Headwinds

  • Difficult revenue comparisons expected.
  • The balance of this year to show continued progress on profitability despite difficult revenue comparisons.
  • The company faced significant challenges in the quarter, including difficult comparisons against the successful launch of Disney Frozen 2 last year.
  • The company faced significant challenges in the quarter, including reduced retailer commitments to Halloween products.
  • Sales decline was driven by lower sales of products related to Disney’s Frozen and Frozen 2, which were strong contributors to sales in the third quarter 2019, and by sharp declines in sales of Disguise Halloween costumes, demand for which was curtailed by COVID-19.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.4%

Avg return

Earnings day

-1.5%

Avg return

5 days after

-0.1%

Avg return

30 days after

36%

23 / 64 earnings

Positive

+38.8%

Q3 2013

Best reaction

-27.3%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.9%-3.4%-9.4%
Q3 2025-6.2%-1.1%-8.3%
Q1 2025-0.9%-6.6%+3.4%
Q4 2024-13.8%-21.5%-29.4%
Q3 2024+15.0%+11.2%+6.2%
Q2 2024+17.4%+2.2%+18.7%
Q1 2024-13.4%-15.4%-18.0%
Q4 2023-27.3%-31.1%-30.0%
Q3 2023+37.1%+58.0%+78.7%
Q2 2023+2.0%+16.0%+9.2%
Q1 2023+8.3%+11.1%+6.6%
Q4 2022-20.3%-16.6%-1.7%
Q3 2022-1.9%-12.0%-5.0%
Q2 2022+33.2%+31.3%+42.6%
Q1 2022+4.8%+21.9%+1.0%
Q4 2021+5.3%+8.2%+5.6%
Q3 2021-6.0%-1.5%-5.9%
Q2 2021+9.0%+12.3%+9.0%
Q1 2021+23.0%+31.5%+16.6%
Q4 2020-7.5%-18.4%-14.6%
Q3 2020+26.1%+4.2%+8.3%
Q2 2020-14.0%-16.5%-36.3%
Q1 2020-14.4%-9.1%+72.7%
Q4 2019-8.4%-16.7%-63.5%
Q3 2019+4.1%-7.2%+22.9%
Q2 2019-10.0%-12.5%+3.8%
Q1 2019-21.4%-28.2%-28.2%
Q4 2018-14.6%-21.6%-47.2%
Q3 2018+7.0%+7.5%+5.7%
Q2 2018-2.1%-4.2%+3.3%
Q1 2018+14.3%+11.9%+47.6%
Q4 2017-8.5%-4.3%-12.8%
Q3 2017-13.2%-19.1%-23.5%
Q2 2017-6.7%-9.3%-6.7%
Q1 2017-4.3%-5.8%-19.2%
Q4 2016+8.9%+4.0%+6.9%
Q3 2016-16.6%-16.0%-15.3%
Q2 2016+3.5%+8.2%+1.9%
Q1 2016-2.6%
Q4 2015-18.5%
Q3 2015-6.1%
Q2 2015+9.1%
Q1 2015-1.7%
Q4 2014-3.4%
Q3 2014-18.2%
Q2 2014-13.5%
Q1 2014-2.9%
Q4 2013+22.4%
Q3 2013+38.8%
Q2 2013-1.1%
Q1 2013+5.7%
Q4 2012-7.6%
Q3 2012-2.1%
Q2 2012+1.2%
Q1 2011-0.2%
Q1 2012+0.1%
Q4 2009-1.1%
Q4 2011-1.1%
Q3 2010-1.2%
Q3 2011-1.2%
Q2 2010-3.2%
Q4 2010-3.2%
Q2 2011-3.2%
Q1 2010+2.0%

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