Benzinga | Feb 17, 2021 10:21AM EST

A Preview Of Jakks Pacific's Earnings

On Thursday, February 18, Jakks Pacific (NASDAQ:JAKK) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Jakks Pacific's per-share loss will be near $1.63 on sales of $127.33 million, according to Wall Street analysts. Jakks Pacific reported a loss of $0.26 when it published results during the same quarter last year. Sales in that period totaled $152.51 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be down 526.92%. Revenue would be down 16.51% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 3.09 -4.06 -0.60 -0.12EPS Actual 4.76 -4.38 -0.72 -0.26Revenue Estimate 230.10 M 79.50 M 77.60 M 150.47 MRevenue Actual 242.29 M 78.76 M 66.56 M 152.51 M

Stock Performance

Shares of Jakks Pacific were trading at $9.75 as of February 16. Over the last 52-week period, shares are up 11.62%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Jakks Pacific is scheduled to hold the call at 17:00:00 ET and can be accessed here.