Jakks Pacific CEO "excited" about holiday season
Jakks Pacific, Inc. (Nasdaq: JAKK) CEO Jack Friedman said the toymaker’s partnerships—especially Disney’s Hannah Montana-branded products—provide the company with exciting opportunities. USA Today and Toys “R” Us have identified Hannah Montana-themed toys as potential top holiday sellers, Friedman said. He made the comments during a morning conference call.
“We are looking forward to new Hannah Montana toys for 2008,” the chief executive said. “Buyers were extremely positive on our execution on this brand and it seems Hannah’s definitely on fire.”
Friedman said other Disney, WWE, Pokemon, Care Bears and Plug It In & Play TV Games products helped power sales. The profit margins on Hannah Montana products are consistent with Jakks’ other offerings, Friedman said.
“We are feeling great about our lineup for this holiday season,” Friedman said. “The portfolio that we have developed and nurtured along with our relationships with retailers, licensors and consumers has positioned us well for this year.”
Friedman confirmed that the company continues to look for acquisition opportunities
“While we’re looking for acquisitions, we’re using our capital for internal development but that wouldn’t prevent us from going into an acquisition,” he said. “We’re even looking at potentially doing larger deals than we have ever done before.”
Before the opening, Malibu, Calif.-based Jakks reported a third-quarter profit of $47.3 million, or $1.45 per share, above analyst estimates of $1.30 per share and up 17% from $40.5 million, or $1.26 per share, a year earlier.
Jakks sales increased 7.6% to $318.4 million, above Wall Street expectations of $300.8 million and compared with $295.8 million during the same period of 2006.
Going forward, Jakks said it’s confident it will meet its fiscal 2007 forecast of $75.8 million in net income, or $2.39 per share, above Wall Street expectations of $2.39 per share. The toymaker expects sales of $800 million during the year, slightly below analyst estimates of $801.6 million. The firm also said it is well-positioned for the holiday season.
In midday trading, JAKK shares are up 1.13%, or $0.30, at $26.85. Over the last 52 weeks, shares have ranged from $18.19 to $31.42.
