JAKKS Pacific, Inc. (JAKK) research, news, and more from GeoInvesting

Company description

Thu, 02 Jul 2015 14:29:24 GMT

JAKKS Pacific, Inc. designs, develops, produces, and markets consumer products in the United States and internationally. The company's Traditional Toys and Electronics segment offers action figures and accessories based on Batman, Star Wars, and Nintendo franchises; toy vehicles and accessories under the Road Champs, Fly Wheels, and MXS names; electronics products, such as video games under the Spy Net, Plug It In & Play TV Games, Disney, and Duck Commander brands names; fashion and baby dolls, and accessories under Disney Frozen, Disney Princess, Disney Fairies, Cabbage Patch Kids, and Graco licenses, as well as plush, infant, and pre-school toys based on PBS’s Daniel Tiger’s Neighborhood name; private label products; foot-to-floor ride-on toys, and tents and wagons based on Fisher Price, Kawasaki, and DC Comics; and pet products, including toys, consumables, and accessories under the JAKKS Pets and American Classics brand names. Its Role Play, Novelty and Seasonal Toys segment offers role and pretend play, dress-up, and novelty products for boys and girls based on Disney Frozen, Black & Decker, McDonald’s, Dirt Devil, Disney Princess, Disney Fairies, and Dora the Explorer licenses; indoor and outdoor kids’ furniture, activity trays and tables, room décor, kiddie pools, and seasonal products based on Crayola and Disney names, as well as pool floats under the Funnoodle name; Halloween and everyday costumes, and accessories under Spiderman, Iron Man, Toy Story, Sesame Street, Power Rangers, and Hasbro, Disney’s Frozen, and Disney Princess brands; and balls and sport sets, and toy hoops under the Skyball, Wave Hoops, and Maui Toys brand names. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain, department, office supply, club, and toy specialty stores; and drug and grocery store chains and wholesalers. JAKKS Pacific, Inc. was founded in 1995 and is based in Malibu, California.

Research

Thu, 02 Nov 2023 04:00:00 GMT

Jakks Pacific, Inc. (NASDAQ:JAKK) ($21.98, Marketcap = $221.61M) - We are currently reviewing a contributor pitch from Josh Dannett that highlights the earning power of toy maker Jakks Pacific as it has eliminated its debt. Below is a summary thesis of his bullish view. As indicated in the table above, the company just reported strong Q3 earnings.

Josh’s JAKK Thesis Summary

In June of this year Jakks Pacific paid down the last of its debt. I expect it to earn more than $46mm in FCF in the back half of the year, and more than $60mm in FCF annually thereafter. With a market cap of only $170mm, and a 2023 P/E of 4.1x it’s too cheap.
Jakks has narrowed its focus to selling toys and costumes tied to evergreen IP at reasonable price points. This strategy should provide stability to sales and allow them at a minimum to grow with global toy sales.
They have right sized their cost structure and inventory levels with a focus upon selling goods FOB China. I’m projecting that even with a 9% decrease in sales in 2023, earnings from operations should increase 9%.

Research

Thu, 07 Jul 2016 14:35:02 GMT

JAKK ($8.46) - via a 13D, Pine River Capital disclosed a 20% stake in JAKK. It was roughly one year ago when we initiated our long position in JAKK due to 13D activity and a corresponding Seeking Alpha article highlighting JAKK as a prime buyout target.

Research

Mon, 26 Oct 2015 15:23:47 GMT

JAKK ($8.72) reported Q3 2015 results:

Sales of $337.0 million vs $349.4 million in the prior year and below analyst estimates of $344.1 million
EPS of $1.12 vs $1.03 in the prior year period and in-line with analyst estimates of $1.11

Quotes from management:

“We’re very pleased with our performance in the third quarter. Our current momentum continues with margins steadily improving, product innovation across a strong portfolio of brands delivering higher profitability, and more efficient operations. We remain focused on executing our full year plans across all brands this holiday season...

...Looking ahead to 2016, we have a strong pipeline of products, and new licenses, creating a strong entertainment slate for us next year, and in the coming next few years. Building within the categories which we are leaders, coupled with expanded innovation, and hot new and current evergreen licenses, we feel confident in the coming years ahead."

Research

Wed, 22 Jul 2015 04:00:00 GMT

JAKK reports Q2 2015 results

JAKK’s ($9.00) beats on both top and bottom line analyst estimates for its Q2 2015 and maintains full year 2015 financial guidance of net sales in the range of $730 to $740 million and EPS range of $0.71 to $0.75. JAKK is a leading designer and marketer of toys and consumer products with a wide range of products that feature popular brands and children's toy licenses.

Q2 2015 Results

Net sales of $131.1 million vs $124.1 in the prior year and ahead of analyst estimates of $124.4
Loss per share of $0.30 vs a loss of $0.43 in the prior year and less than analyst estimates of a loss $0.35.

On June 17, 2015, we initiated a long position in JAKK due to recent13-D activity, value on analyst EPS estimates and a corresponding Seeking Alphaarticle highlighting JAKK as a prime buyout target. Shares were trading at $8.85 at the time of our e-mail and reached a high of $10.19 just a few weeks later. However, on July 8, 2015 we added to our position as shares of JAKK fell 13% due to a downgrade by a BMO analyst, an event that we believed offered a buying opportunity, as our worst case price valuation scenario of $11.18 is meaningfully higher than BMO’s price target of $10.00.

Research

Wed, 17 Jun 2015 04:00:00 GMT

Initiated long position in JAKK ($8.85)

Yesterday late in the trading day we initiated a long position in JAKK. Recent 13D activity, value on analyst EPS estimates and a Seeking Alpha article highlighting JAKK as a prime buyout target has piqued our interest. The author believes shares could rise 80%. We will continue our due diligence process and likely look to add to our position.