Jakks’ Profit Drops 45%; Forecasts Are Lowered
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Shares of toy maker Jakks Pacific Inc. fell as much as 14% after it posted a 45% drop in second-quarter profit and reduced its full-year sales and earnings forecasts.
The Malibu-based company, maker of World Wrestling Entertainment Inc. action figures, lowered its 2006 revenue estimates by $50 million to $775 million and its full-year earnings to $2.32 a share from $2.63.
The stock fell as low as $16 before closing at $16.95, down $1.76 on the day.
Production delays and a decline in sales of its Fly Wheels products led to the reduced forecast. Analysts surveyed by Thomson Financial were expecting profit of $2.40 a share on revenue of $786 million.
For the three months ended June 30, the company earned $6.36 million, or 22 cents a share, compared with $11.6 million, or 38 cents, a year earlier. Sales fell 2.4% to $124 million.
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