JAKKS Pacific (JAKK) to Report Q2 Earnings: Here's What to Expect
JAKKS Pacific, Inc. JAKK is scheduled to report second-quarter 2023 results on Jul 27 after market close.
In the last reported quarter, the company’s earnings and net sales topped the Zacks Consensus Estimate by 38.5% and 18%, respectively.
How Are Estimates Placed?
The Zacks Consensus Estimate for earnings per share is pegged at 47 cents. In last year’s reported quarter, the company reported earnings per share of $2.10. For net sales, the consensus estimate is pegged at $154.4 million, suggesting a decline of 29.8% from the year-ago quarter’s reported figure.
JAKKS Pacific, Inc. Price and EPS Surprise
JAKKS Pacific, Inc. price-eps-surprise | JAKKS Pacific, Inc. Quote
Let’s analyze the factors that are likely to have made an impact this earnings season.
Key Factors at Play
JAKKS Pacific’s second-quarter top line is likely to have been negatively impacted by dismal North America net sales, courtesy of lower consumer discretionary spending. Due to ongoing economic uncertainties, consumers are more selective and price conscious, which is reflected in the comparatively lower consumer discretionary spending on a year-over-year basis. On the other hand, the company is likely to have benefited from the solid performance of the international segment.
For second-quarter 2023, our model predicts United States and Canada sales to decline 37.5% to $120.2 million and 4% to $5.3 million, respectively, year over year. Moreover, we predict total International net sales to increase 16.5% to $26.1 million.
Although the aforementioned headwinds are concerns, the company’s focus on strategic acquisitions, innovations and collaborations with popular brands and movie franchisees are likely to bode well for its top-line growth.
What Our Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for JAKKS Pacific this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: JAKKS Pacific has an Earnings ESP of 0.00%. You can uncover the best stocks to before they’re reported with our Earnings ESP Filter.
Zacks Rank: JAKKS Pacific currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat:
MGM Resorts International MGM has an Earnings ESP of +19.43% and a Zacks Rank of 2.
Shares of MGM Resorts have increased 10.9% in the past three months. MGM’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 81%.
Boyd Gaming Corporation BYD has an Earnings ESP of +2.92% and a Zacks Rank of 3.
Shares of Boyd Gaming have gained 7.3% in the past three months. BYD’s earnings beat estimates in all the trailing four quarters, the average negative surprise being 13.7%.
Hilton Worldwide Holdings Inc. HLT has an Earnings ESP of +0.82% and a Zacks Rank of 3.
Shares of Hilton have gained 2.3% in the past three months. HLT’s earnings beat estimates in all the trailing four quarters, the average surprise being 17.2%.
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JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report
