Jakks Beats 3Q Expectations

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Shares of Jakks Pacific Inc. saw their biggest gain in six years on Thursday as the maker of World Wrestling Entertainment Inc. action figures reported higher-than-expected quarterly profit and reiterated its full-year forecast.


Third-quarter net income rose 24 percent to $40.5 million ($1.26 a share) from $32.7 million ($1.05). Sales were up 27 percent to $295.8 million, the first gain in four quarters. Analysts had anticipated per-share net income of $1.18 and sales of $276 million.


Jakks also confirmed its full-year forecast of $2.32 a share. The company’s shares which had been down 13 percent so far this year, soared nearly 23 percent to $22.33 by early afternoon trading.


“I would say the stock is up because they reiterated their guidance, and ….maybe some short covering going on,” Sean McGowan, a toy analyst with Wedbush Morgan Securities, told Reuters.


Jakks, which also makes products based on the Care Bears and Cabbage Patch Kids, said it benefited from the purchase of Creative Designs International Ltd., which has licenses to make dress-up clothes and accessories based on Disney characters

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