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Tuesday, Mar 21, 2023

Monday Rundown: Jakks Stock Stumbles as Income Rises, Cheesecake Barely Beats Wall St. Expectations

Shares of Jakks Pacific Inc. dropped on Monday as the Malibu toy maker announced shrinking net sales this quarter compared with last year despite a boost in net income.

The company, which counts “Star Wars” and “Frozen” toys among its bestsellers, reported net income of $45.8 million ($1.12 a share) in the third quarter, compared with $44.1 million ($1.03) this time last year. But net sales were $337 million, down from $349.4 million in the third quarter of 2014.

Stock dipped on Monday from a high of $8.92 to $7.71 a share, losing almost 11 percent from Friday’s close.

Chief Executive Officer Stephen Berman said in a statement that a “strong pipeline of products” would push the company forward, helping it to reach net sales ranging between $730 million and $740 million and earnings between 71 and 75 cents a share by the end of the year.

Cheesecake Barely Beats Wall St. Expectations

Cheesecake Factory Inc. on Monday reported third-quarter earnings that slightly beat analysts’ expectations but missed on revenue forecasts.

The Calabasas restaurant chain posted net income of $26.2 million (54 cents a share) in the quarter ended Sept. 30, compared to $24.2 million (49 cents) in the same period a year earlier. Revenue rose 5 percent to $526 million.

Analysts on average expected net income of 56 cents on revenue of about $535 million, according to Thomson Financial Network.

Cheesecake Factory reported same-store sales increased by 2.2 percent, 23rd consecutive quarter of positive same store sales, according to Chief Executive David Overton.

“We experienced similar cost dynamics to the second quarter, with favorability in costs that affected our results last year helping to offset some of the wage inflation that many restaurants and retailers are experiencing,” Overton said in a statement.

Shares closed up $1.28 cents, or roughly 2.5 percent, to $51.99 on the Nasdaq.

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