JAKKS Pacific Posts Narrower Than Expected Loss, Sales Top View; Backs FY16 View

(RTTNews) - JAKKS Pacific, Inc. (JAKK), a manufacturer of toys and consumer products, reported Wednesday that its second-quarter net loss attributable to the company was $4.37 million or $0.27 per share, narrower than last year's loss of $5.68 million or $0.30 per share.

On average, six analysts polled by Thomson Reuters expected loss of $0.31 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted EBITDA for the second quarter increased 166% to $4.0 million, compared to Adjusted EBITDA of $1.5 million in 2015. Operating margin improved 150 basis points.

Net sales for second quarter 2016 increased 8 percent to $140.98 million from $131.11 million reported in the comparable period in 2015. Analysts were looking for sales of $134.80 million.

Stephen Berman, JAKKS Pacific Chairman and Chief Executive Officer, said, "We had a solid second quarter performance in line with expectations, and we delivered better than consensus revenue and earnings with continuing margin improvement and operating efficiencies reflected in the increased Adjusted EBITDA year over year. This marks the third consecutive second quarter showing year-over-year growth in revenue and earnings."

Looking ahead, in the second half 2016, JAKKS Pacific is set to unveil several new exciting products across a number of categories for the upcoming Fall and holiday seasons.

For 2016, JAKKS Pacific continues to forecast net sales to increase 7 percent to approximately $800.0 million, earnings per share to increase 10 percent to approximately $0.78 per share, and Adjusted EBITDA to increase 28 percent to approximately $65.0 million.

This guidance reflects anticipated gross margin expansion and operating margin growth in 2016.

Analysts expect sales of $796.25 million and earnings of $0.78 per share.