JAKKS Pacific (NASDAQ:JAKK) Posts Quarterly Earnings Results, Beats Expectations By $0.34 EPS

JAKKS Pacific (NASDAQ:JAKK) released its earnings results on Thursday. The company reported $2.68 earnings per share for the quarter, beating analysts’ consensus estimates of $2.34 by $0.34, reports. JAKKS Pacific had a return on equity of 8.43% and a net margin of 4.17%. The firm had revenue of $254.22 million during the quarter, compared to the consensus estimate of $226.58 million.

Here are the key takeaways from JAKKS Pacific’s conference call:

• Q3 net sales rose 20% to $254 million, with year-to-date sales up 13%. North America grew 28% in the quarter, while dolls, role play and dress-up increased 29% and action play and collectibles rose 19%.
• Financial performance improved, with adjusted EBITDA increasing to $44.4 million from $36.5 million and adjusted EPS rising to $2.68 from $1.80. Cash increased to $45 million, inventory declined to $64 million, and the board approved a $0.25-per-share dividend.
• Management cited ongoing pressure from higher resin, diesel, product and freight costs, while tariff guidance remains unresolved. Selling expenses are also expected to rise as the company increases holiday promotional activity.
• Management expressed confidence in 2027, citing major entertainment releases including Sonic the Hedgehog 4, The Simpsons movie and Frozen 3, international expansion, growing private-label sales, and a new strategic focus on anime, manga, VTubers and digital entertainers.

JAKKS Pacific Stock Up 3.3%

JAKK traded up $0.98 during trading on Friday, hitting $30.52. 455,741 shares of the company’s stock were exchanged, compared to its average volume of 122,189. The business’s 50 day moving average is $25.98 and its two-hundred day moving average is $24.05. JAKKS Pacific has a fifty-two week low of $14.86 and a fifty-two week high of $32.16. The stock has a market cap of $349.15 million, a P/E ratio of 14.33 and a beta of 1.32.

JAKKS Pacific Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 28th. Shareholders of record on Friday, November 27th will be issued a dividend of $0.25 per share. The ex-dividend date is Friday, November 27th. This represents a $1.00 annualized dividend and a yield of 3.3%. JAKKS Pacific’s dividend payout ratio is presently 71.94%.

JAKKS Pacific News Roundup

Here are the key news stories impacting JAKKS Pacific this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations. JAKKS reported adjusted earnings of $2.68 per share, ahead of analyst estimates ranging from $2.34 to $2.54 and up from $1.80 a year earlier. Revenue reached $254.22 million, topping the $226.58 million consensus estimate and increasing 20% year over year. JAKKS Pacific Reports Third Quarter 2026 Financial Results
• Positive Sentiment: The board approved a quarterly cash dividend of $0.25 per share. The payout equates to $1.00 annually and a reported yield of approximately 3.3%, potentially making the stock more attractive to income-focused investors. The dividend is scheduled for payment on December 28 to eligible shareholders. Quarterly Dividend Announcement
• Positive Sentiment: Upcoming entertainment and retail opportunities may support future sales. JAKKS highlighted a 2027 product slate that includes Sonic the Hedgehog 4, while Toys “R” Us is reportedly expanding with 120 stores. New Buddy the Elf and Jovie dolls are also scheduled to arrive at Walmart, expanding product visibility and distribution. 2027 Product Slate and Retail Expansion
• Neutral Sentiment: Despite the earnings beat, JAKKS reported a relatively modest 2.77% net margin and 4.33% return on equity, indicating that profitability remains limited and that sustained execution will be important.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on JAKK shares. Maxim Group boosted their target price on shares of JAKKS Pacific from $27.00 to $57.00 and gave the company a “buy” rating in a report on Friday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of JAKKS Pacific in a research report on Friday, September 11th. Zacks Research upgraded shares of JAKKS Pacific from a “strong sell” rating to a “hold” rating in a research note on Monday, October 12th. Finally, Wall Street Zen downgraded shares of JAKKS Pacific from a “strong-buy” rating to a “buy” rating in a research report on Saturday. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $57.00.

JAKKS Pacific Company Profile

JAKKS Pacific, Inc is a toy and consumer products company that develops, designs, produces and markets toys, games, seasonal products and related merchandise. Its product portfolio includes action figures, dolls, roleplay toys, dress-up and costume products, plush items, outdoor and sports toys, games, and other products for children and families.

The company markets products under its own brands, including Maui, Disguise and Moose Mountain, as well as through licensing and strategic partnerships with entertainment and consumer brands.