Jakks Pacific Inc. shares dropped nearly 16 percent Thursday after the Malibu toymaker reported a larger-than-expected first quarter loss, caused by lower sales and also costs related to recent acquisitions. The company lowered its guidance for 2009.

Jakks reported a net loss of $10.8 million (-40 cents per share), compared with net income of $877,000 (3 cents) a year ago. Revenue for the quarter, typically the toy industry's slowest, fell 17 percent to nearly $109 million. The company said retailers had been cutting back on orders due to the recession.

Analysts polled by Thomson Reuters expected a loss of 34 cents per share on revenue of more than $109 million. Stifel Nicolaus analyst Drew Crum downgraded shares to "hold" from "buy," noting that this was the fifth consecutive quarter that the company missed analyst expectations.

Co-Chief Executive Jack Friedman said the quarter was hurt by weaker-than-expected sales for products in its World Wrestling Entertainment, Pokemon and Hannah Montana lines. The company expects recent acquisitions to begin contributing to earnings in the third quarter. Those companies are Disguise Inc., a Halloween costume and decoration company; and Tollytots Ltd. and Kids Only Inc., two children's product companies.

Jakks lowered its full-year profit outlook to $1.70 to $2 per share from previous guidance of $2.25 per share. Analysts expect $2.11 per share. The company maintained revenue guidance at $920 million, while analysts expect revenue of $914 million.

Jakks shares closed down $2.13, or 15.9 percent, to $11.30 on the Nasdaq.

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