Struggling Santa Monica-based toymaker Jakks Pacific Inc. received a boost from Walt Disney Co.’s “Frozen” franchise.
The company beat Wall Street expectations for its third-quarter earnings, and Jakks shares surged more than 6% on Nov. 7.
Jakks reported sales of $236 million in the quarter, an 18% jump compared to the same time last year. Online sales were up 32% in 2018, and quarterly earnings per share were $0.76 compared to $0.38 during the year-
Jakks, which makes toys based on Hollywood blockbusters, said the gains were driven by excitement around “Frozen 2,” which opens Nov. 22.
The company also announced that Chief Financial Officer Brent Novak would be leaving at the end of 2019. Chief Executive Stephen Berman said Novak was instrumental in helping the company complete a recapitalization process earlier this year. The injection of funds helped Jakks avoid a takeover bid by Hong Kong-based Meisheng Cultural Co. Ltd.
The company recorded its strongest quarterly growth in five years, noted Jefferies analyst Stephanie Wissink, who increased the price target from 80 cents to $1.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- ‘Frozen’ Delivers Much Needed Heat for Toymaker
- Jakks Pacific Stirs Deal Talk
- Jakks Pacific Expects to Turn Profitable This Year
- STEPHEN BERMAN
- Toymaker Jakks Pacific Renews Disney Deal
- Wednesday Rundown: L.A. Club to Host 2023 U.S. Open, Jakks Shares Spike on Sales Boost
- Toymaker’s Game Plan Fails to Please Investors
- Billionaire’s Bid Fails to Raise Toymaker’s Game