JAKKS Pacific ( NASDAQ: JAKK ) popped in a big way on Thursday after crushing earnings estimates on Wednesday evening.
The Santa Monica-based toy manufacturer posted a surprise profit on Wednesday evening, notching non-GAAP EPS of $2.10. Analysts had anticipated a $0.53 loss. Additionally, a 96.1% rise in revenue to $220.4M easily surpassed expectations of just $98.33M. A triple -digit jump in costume sales were noted as a key driver of the above-expectation earnings figures.
“Our past quarter’s results are extremely gratifying,” CEO Stephen Berman said. “Despite the continuation of supply-chain cost pressures, we nonetheless recorded our first profitable second quarter in 10 years.”
Looking ahead to Halloween sales in the back half of the year, Berman anticipated strong sales to continue for the full-year. The strong performance also allowed the company to opportunistically reduce its debt load.
“We’re pleased to share that we utilized some of the proceeds of our recent results to make an optional $10M pay-down against our long-term debt, mitigating some of the impact rising interest rates have on our cash interest expense,” Berman explained.
Shares soared over 40% higher shortly after Thursday’s open.
Read the earnings call transcript .
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JAKKS Pacific stock jumps over 40% on big earnings beat