JAKKS Pacific Inc. (JAKK) stock reverses pre-market to become bearish, decreasing by 4.15% against its previous day gain of 4.32%. JAKK stock fell to $13.18 in the pre market while it was at $13.75 on November 12, at 4:00 pm EST. The intraday trading volume of the stock was 159,708, while its price range for the day was $12.98 – $13.89. While JAKK saw a small downtrend post Q3 earnings, the stock had been in an uptrend since the beginning of this month, leading to its fall in the pre-market today as profit booking starts.
About JAKK
The American company, JAKKS Pacific Inc. (JAKK) is a leading toy and consumer products manufacturer. It was founded in 1995 and is currently headquartered in Santa Monica, CA. Under its two business segments: Toys and Consumer Products, and Halloween, JAKKS designs, develops, and sells various products. The products include all kinds of kids’ toys, seasonal outdoor products, costumes, and accessories, etc.
JAKKS stock Movement
While the Q3 financial results did not impress the investors much, the downtrend after it was very short-lived. The company attributed some of its financial problems to the pandemic but promised to do better as the holiday season arrives. The launch of its new products, including Super Mario Deluxe Browser Airship and Sonic the Hedgehog Robot Battle set, received a positive reaction. Another launch of the RC Rock N’ Rollerskate Dolls for holiday shoppers further improved its uptrend. The uptrend continued till this morning, which can be attributed to profit-booking and market corrections.
The Q3 Financial Results
JAKKS declared its third-quarter financial results for 2021, on October 27. According to the results, the third-quarter net sales were $237.0 million, against $242.3 million in 2020.
Despite the sales decline, the adjusted net income attributable to common stockholders for Q3 was $34.2 million in 2021, compared to $32.6 million in 2020. The reported adjusted net income per diluted share was $3.76 for Q3 2021, against $3.56 for 2020. JAKKS beat their consensus estimate net income per share of $2.87 by 31.01%.
As of September 30, 2021, the cash and cash equivalents totaled to $26.7 million, as compared to $79.8 million as of September 30, 2020.
The management is hopeful for the future as the team is working on new initiatives for 2022 and beyond, in order to deliver additional top-line growth and bottom-line margin.
