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.
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