Jakks Pacific Inc. on Tuesday said its net income rose 14 percent in the third quarter on higher toy sales and a tax benefit.
The Malibu toy maker's net income rose to $54.1 million ($1.70 per share) for the quarter ended Sept. 30. compared with $47.3 million ($1.45) a year ago. Results include 41 cents per share in tax benefits, compared with 18 cents last year.
Sales grew 12 percent to $358 million, helped by higher demand for the company's dolls, action figures and trendy new electronic toys such as its EyeClops Night Vision Goggles.
Analysts polled by Thomson Reuters expected about $1.47 per share on sales of $332 million, excluding one-time items.
The company said it still expects to meet its 2008 forecast for $2.80 in earnings per share and sales of at least $891 million. Analysts are expecting $2.76 per share on $898 million in sales.
"The bulk of our new items for this year shipped in the third quarter as retailers stocked shelves for the upcoming holiday season, and initial reads on our award-winning top drivers have been promising," Chief Executive Jack Friedman said in a statement. "Thus far we are seeing positive momentum for a strong full year for our business."
Jakks' sunny forecast for the holiday season comes a day after larger toymakers Mattel Inc. of El Segundo and Hasbro Inc. reported good earnings but a more cautious outlook.
After earlier rising 4 percent, Jakks shares closed down 27 cents, or 1 percent, to $20.25 on the Nasdaq.
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