I have no position in this stock but was very curious about the co. after reading Mark Gomes' piece at S.Alpha in early Oct after informing his PTT (Poised to Triple) newsletter crowd about it. An earlier Josh Arnold S.Alpha article some weeks prior to Gomes' piece was very pessimistic about JAKK's prospects and alerted me to why something like 70% of the float was short--weak profit margins after costs, and a big convertible debt overhang.
As i look over the qtrly report today, a few things stand out:
1) fully diluted shares (whereby one calculates EPS) has mushroomed from nearly 22M weighted average for the first nine months of 2013 to 45M f.d. shares with today's report for the Q3 2014 tally. That's a lot of dilutive share-growth and very likely has some analysts and big investors concerned about future EPS growth.
2) due to this increase, notice that net income was higher this qtr than in the comparable qtr last year, but this year's Q3 EPS of 1.03 was BELOW last year's Q3 EPS of 1.11 because of that dilution. And evidently something like $5.6M of this Q3's earnings were from a special gain arising from the fact that their Maui segment incurred an under-performance penalty.
3) mgmt guided for margins around 31-32% but Josh Arnold's cautionary article a few months ago calculated that JAKK's SG&A costs, including servicing their massive debt, were eating up fully 30% of gross profits, severely pressuring the bottom line.
After reading Gomes' article in early Oct. i viewed the movie Frozen & watched some of the Disney Ice Show on Youtube. I also see JAKK's many other licenses for highly lucrative past, present and upcoming franchises, and see JAKK's increasing international reach, and also see how with their DreamPlay segment they are designing more and more digital apps and robotic toys (presumably with the help of their biggest investor and his interest in robotics and interactive toys for smarter children). With all of this i can see how conceivably the company could really grow their top line over coming qtrs and years (albeit with the seasonality still hitting this and other companies like Hasbro and Mattel).
But the concern remains: can JAKK grow the BOTTOM LINE eps? Mgmt is guiding for a big YES.
Let's see what they can do...
Recent JAKK News
- Disguise and Innersloth Announce New Multi-Year Agreement and Global Costume Rights for Among Us • GlobeNewswire Inc. • 09/10/2024 01:00:00 PM
- JAKKS Pacific Toys Named in Walmart’s Top Toys for 2024 • GlobeNewswire Inc. • 09/09/2024 02:00:00 PM
- Disguise Announces Extension of Global Rights for Netflix’s Stranger Things and Bridgerton • GlobeNewswire Inc. • 09/03/2024 01:00:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/06/2024 08:43:54 PM
- JAKKS Pacific Reports Second Quarter 2024 Financial Results • GlobeNewswire Inc. • 07/31/2024 08:05:00 PM
- JAKKS Pacific Announces Launch of Lifestyle Seasonal Line for Fall • GlobeNewswire Inc. • 07/23/2024 01:00:00 PM
- JAKKS Pacific, Inc. Announces Second Quarter 2024 Earnings Call • GlobeNewswire Inc. • 07/12/2024 01:00:00 PM
- Disguise and Aniplex of America Announce New Licensing Agreement for Rights to Demon Slayer: Kimetsu no Yaiba • GlobeNewswire Inc. • 06/18/2024 01:00:00 PM
- JAKKS Pacific Bites Into Upcoming Dog Man Movie From DreamWorks/Universal and Dav Pilkey’s Global Bestselling Book Franchise for Toys and Costumes • GlobeNewswire Inc. • 05/14/2024 01:00:00 PM
- Disguise Announces New CoComelon and Blippi Halloween Costumes and Costume Accessories • GlobeNewswire Inc. • 05/09/2024 01:00:00 PM
- JAKKS Pacific Reports First Quarter 2024 Financial Results • GlobeNewswire Inc. • 04/24/2024 08:05:00 PM
- JAKKS Pacific, Inc. Announces First Quarter 2024 Earnings Call • GlobeNewswire Inc. • 04/16/2024 03:54:52 AM
- JAKKS Pacific Announces Partnership With Epic Story Media for Launch of Wild Manes • GlobeNewswire Inc. • 04/08/2024 01:00:00 PM
- Disguise Announces New Worldwide Costume Program Based on Ghostbusters: Frozen Empire • GlobeNewswire Inc. • 04/02/2024 01:00:00 PM
- Jakks Pacific Gives WonderCon Panel Audience First Look At Toys and Collectibles Inspired by The Simpsons • GlobeNewswire Inc. • 03/26/2024 01:00:00 PM
- JAKKS Pacific Announces Redemption of All Shares of Preferred Stock • GlobeNewswire Inc. • 03/12/2024 10:00:00 AM
- JAKKS Pacific Reports Fourth Quarter and Full-Year 2023 Financial Results • GlobeNewswire Inc. • 02/29/2024 09:05:00 PM
- Disguise Announces Extension of Rights for Halo Franchise • GlobeNewswire Inc. • 02/27/2024 02:00:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/14/2024 08:19:33 PM
- JAKKS Pacific, Inc. Announces Fourth Quarter and Full Year 2023 Earnings Call • GlobeNewswire Inc. • 02/09/2024 02:00:00 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 01/31/2024 07:08:26 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/04/2024 02:40:15 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/04/2024 02:24:31 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/04/2024 02:22:43 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/21/2023 09:07:57 PM
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