Have you evaluated the performance of Jakks Pacific's (JAKK) international operations for the quarter ending September 2024? Given the extensive global presence of this toymaker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
Our review of JAKK's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter amounted to $321.61 million, marking an increase of 3.8% from the year-ago quarter. We will next turn our attention to dissecting JAKK's international revenue to get a clearer picture of how significant its operations are outside its main base.
Exploring JAKK's International Revenue Patterns
Latin America accounted for 7.04% of the company's total revenue during the quarter, translating to $22.63 million. Revenues from this region represented a surprise of +62.7%, with Wall Street analysts collectively expecting $13.91 million. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $3.24 million (2.18%) and $15.32 million (4.95%) to the total revenue, respectively.
Of the total revenue, $7.07 million came from Canada during the last fiscal quarter, accounting for 2.20%. This represented a surprise of -36.44% as analysts had expected the region to contribute $11.12 million to the total revenue. In comparison, the region contributed $6.29 million, or 4.23%, and $11.45 million, or 3.70%, to total revenue in the previous and year-ago quarters, respectively.
Australia and New Zealand generated $3.34 million in revenues for the company in the last quarter, constituting 1.04% of the total. This represented a surprise of -4.33% compared to the $3.49 million projected by Wall Street analysts. Comparatively, in the previous quarter, Australia and New Zealand accounted for $1.61 million (1.08%), and in the year-ago quarter, it contributed $2.69 million (0.87%) to the total revenue.
During the quarter, Middle East and Africa contributed $0.91 million in revenue, making up 0.28% of the total revenue. When compared to the consensus estimate of $0.54 million, this meant a surprise of +68.52%. Looking back, Middle East and Africa contributed $0.12 million, or 0.08%, in the previous quarter, and $0.48 million, or 0.16%, in the same quarter of the previous year.
During the quarter, Asia contributed $2.35 million in revenue, making up 0.73% of the total revenue. When compared to the consensus estimate of $3.37 million, this meant a surprise of -30.42%. Looking back, Asia contributed $1.27 million, or 0.85%, in the previous quarter, and $3.19 million, or 1.03%, in the same quarter of the previous year.
Europe generated $30.03 million in revenues for the company in the last quarter, constituting 9.34% of the total. This represented a surprise of +9.73% compared to the $27.37 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $10.26 million (6.91%), and in the year-ago quarter, it contributed $31.68 million (10.23%) to the total revenue.
International Revenue Predictions
Wall Street analysts expect Jakks to report $134.76 million in total revenue for the current fiscal quarter, indicating an increase of 5.8% from the year-ago quarter. Latin America, Canada, Australia and New Zealand, Middle East and Africa, Asia and Europe are expected to contribute 4.7% ($6.27 million), 3.8% ($5.1 million), 1.3% ($1.69 million), 0.2% ($0.25 million), 1.2% ($1.57 million) and 9.1% ($12.19 million) to the total revenue, respectively.
For the full year, the company is expected to generate $679.29 million in total revenue, down 4.5% from the previous year. Revenues from Latin America, Canada, Australia and New Zealand, Middle East and Africa, Asia and Europe are expected to constitute 4.6% ($31.41 million), 3.8% ($25.88 million), 1.2% ($8.14 million), 0.2% ($1.14 million), 1.1% ($7.18 million) and 8.2% ($55.56 million) of the total, respectively.
Closing Remarks
Jakks' reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Jakks, bearing a Zacks Rank #4 (Sell), is expected to underperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Reviewing Jakks' Recent Stock Price Trends
Over the preceding four weeks, the stock's value has appreciated by 16.8%, against an upturn of 0.4% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Discretionary sector, which counts Jakks among its entities, has appreciated by 2.3%. Over the past three months, the company's shares have seen an increase of 42.5% versus the S&P 500's 5.5% increase. The sector overall has witnessed an increase of 10.2% over the same period.
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