Jakks Pacific Inc. on Wednesday reported higher revenue for the first time in two years, enabling the Malibu toymaker to report second-quarter earnings that surpassed analysts’ estimates.
The company reported net income of $4.2 million (16 cents per share), compared with $3 million (11 cents) a year earlier. Net sales rose 7 percent to nearly $132 million.
Analysts surveyed by Thomson Reuters on average expected the company to report per-share profit of 15 cents on revenue of $129 million.
Gross margins contracted to 34.1 percent from 35 percent last year, as the company saw higher raw material costs. “Our results for the second quarter reflect our commitment to tightening controls on our overall business and creating and delivering diverse products that are well received by our customers and consumers,” Chief Executive Stephen Berman said in a statement.
For the full year, the company said that it still expects to earn $1.32 to $1.35 per share on sales of $770 million to $775 million. The Wall Street consensus is for per-share profit of $1.41 on revenue of roughly $781 million.
Jakks also announced that it signed a content distribution deal with the Nickelodeon TV channel for worldwide broadcast rights to its new animated series Monsuno. Jakks created the underlying Monsuno property primarily as a launch pad for its products. Toys based on the series will hit the shelves in conjunction with the show’s premiere next spring.
Shares were up 7 cents, or less than 1 percent, to $17.91 in midday trading on the Nasdaq.
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