Higher-than-expected quarterly earnings at toy maker Jakks Pacific lifted the company’s stock price 5 percent early Tuesday.
Jakks reported before markets opened on Tuesday that its net income for the third quarter was $40.4 million, or $1.23 per share, compared to $33.7 million, or $1.06 per diluted share, in the same quarter of 2009.
The consensus earnings estimate of analysts surveyed by Thomson Reuters was $1.07 per share.
The Malibu toy maker attributed its gains to brisk sales of Halloween costumes, strong sales of traditional toys such as dolls and action figures and better profit margins on new toys, which it sold during the third quarter in anticipation of the upcoming holiday shopping season.
“Many new products hit shelves in the third quarter and thus far our dolls, role play, electronics and several other categories are on track or exceeding our expectations.” Chief Executive Stephen Berman said in a statement. “Barring any adverse circumstances such as capacity issues in Asia and shipping delays, we are optimistic that we will finish the year ahead of expectations.”
Shares of Jakks rose 94 cents or 5 percent to trade at $19.56 by midday on the Nasdaq Stock Exchange.
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