Yahoo Finance International Markets and Jakks (JAKK): A Deep Dive for Investors
Did you analyze how Jakks Pacific (JAKK) fared in its international operations for the quarter ending March 2024? Given the widespread global presence of this toymaker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
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.
For the quarter, the company's total revenue amounted to $90.08 million, experiencing a decline of 16.2% year over year. Next, we'll explore the breakdown of JAKK's international revenue to understand the importance of its overseas business operations.
A Closer Look at JAKK's Revenue Streams Abroad
Australia and New Zealand generated $1.35 million in revenues for the company in the last quarter, constituting 1.5% of the total. This represented a surprise of +12.17% compared to the $1.2 million projected by Wall Street analysts. Comparatively, in the previous quarter, Australia and New Zealand accounted for $1.49 million (1.2%), and in the year-ago quarter, it contributed $1.61 million (1.5%) to the total revenue.
Of the total revenue, $8 million came from Latin America during the last fiscal quarter, accounting for 8.9%. This represented a surprise of +69.41% as analysts had expected the region to contribute $4.72 million to the total revenue. In comparison, the region contributed $4.43 million, or 3.5%, and $9.2 million, or 8.6%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Canada contributed $3.37 million in revenue, making up 3.7% of the total revenue. When compared to the consensus estimate of $3.96 million, this meant a surprise of -14.9%. Looking back, Canada contributed $4.69 million, or 3.7%, in the previous quarter, and $4.05 million, or 3.8%, in the same quarter of the previous year.
Middle East and Africa accounted for 0.3% of the company's total revenue during the quarter, translating to $0.23 million. Revenues from this region represented a surprise of -36.76%, with Wall Street analysts collectively expecting $0.37 million. When compared to the preceding quarter and the same quarter in the previous year, Middle East and Africa contributed $0.36 million (0.3%) and $0.63 million (0.6%) to the total revenue, respectively.
During the quarter, Europe contributed $5.74 million in revenue, making up 6.4% of the total revenue. When compared to the consensus estimate of $11.56 million, this meant a surprise of -50.39%. Looking back, Europe contributed $17.99 million, or 14.1%, in the previous quarter, and $10.16 million, or 9.5%, in the same quarter of the previous year.
Asia accounted for 1.1% of the company's total revenue during the quarter, translating to $0.97 million. Revenues from this region represented a surprise of -27.44%, with Wall Street analysts collectively expecting $1.33 million. When compared to the preceding quarter and the same quarter in the previous year, Asia contributed $2.14 million (1.7%) and $1.38 million (1.3%) to the total revenue, respectively.
International Market Revenue Projections
The current fiscal quarter's total revenue for Jakks, as projected by Wall Street analysts, is expected to reach $158.62 million, reflecting a decline of 5% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Australia and New Zealand is anticipated to contribute 1.1% or $1.7 million, Latin America 3.7% or $5.81 million, Canada 3.8% or $6.05 million, Middle East and Africa 0.3% or $0.49 million, Europe 11.4% or $18.04 million and Asia 1.3% or $2.01 million.
Analysts expect the company to report a total annual revenue of $697.51 million for the full year, marking a decrease of 2% compared to last year. The expected revenue contributions from Australia and New Zealand, Latin America, Canada, Middle East and Africa, Europe and Asia are projected to be 1.1% ($7.6 million), 4.1% ($28.52 million), 3.8% ($26.33 million), 0.3% ($2.09 million), 11.6% ($80.84 million) and 1.3% ($9.11 million) of the total revenue, in that order.
The Bottom Line
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.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
At the moment, Jakks has a Zacks Rank #1 (Strong Buy), signifying that it may outperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Exploring Recent Trends in Jakks' Stock Price
The stock has declined by 22.8% over the past month compared to the 2% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Discretionary sector, which includes Jakks, has decreased 6.2% during this time frame. Over the past three months, the company's shares have experienced a loss of 39.7% relative to the S&P 500's 4.6% increase. Throughout this period, the sector overall has witnessed a 5.6% decrease.
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JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
