Why JAKKS Pacific (JAKK) Shares Are Jumping Today - Jakks Pacific (NASDAQ:JAKK)

JAKKS Pacific Inc JAKK reported second-quarter FY22 sales growth of 96.2% year-on-year, to $220.42 million, beating the consensus of $122.07 million.
Toys/Consumer Products sales increased 82.6% to $148.9 million, and Costumes jumped 132.2% to $71.6 million.
The gross margin for the quarter contracted 77 basis points to 27.6%.
The operating margin expanded from 1.6% to 10.7%, and operating income for the quarter was $23.7 million versus $1.8 million last year.
The company held $62.3 million in cash and equivalents as of June 30, 2022. Cash provided by operating activities for the six months totaled $36.5 million.
Adjusted EBITDA for the quarter was $27.1 million versus $5.0 million last year.
Adjusted EPS of $2.10 beat the analyst consensus of $(0.53).
"During the quarter we continued to see solid consumer demand across most of our major toy businesses, especially with Disney's Encanto™ and Sega's Sonic the Hedgehog®. Our Costume business shipped over $71 million, the highest Q2 shipment level since Disguise joined JAKKS in 2008. Despite the continuation of supply-chain cost pressures, we nonetheless recorded our first profitable second quarter in 10 years," said CEO Stephen Berman.
Price Action: JAKK shares are trading higher by 37.59% at $23.50 in premarket on the last check Thursday.
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JAKKS Pacific Shares Soar On Strong Q2 Earnings