JAKKS Pacific (JAKK) Stock Forecast & Price Target

Jakks Pacific Inc. has demonstrated solid revenue growth, with net sales increasing by 3.8% last year, driven by successful movie launches, highlighting the company's ability to capitalize on popular franchises. For the first nine months of 2025, international revenue rose by 4%, indicating a strengthening global footprint that now contributes 25.4% of total sales, a notable increase from the prior year's 19.2%. Additionally, the company's strong financial position is underscored by a cash per share increase to $2.43 and a tangible book value per share of $19.33, both of which reflect a solid foundation for future growth and ongoing operational opportunities in licensing.

Jakks Pacific Inc. reported a significant decline in third-quarter earnings with an EPS of $1.80, falling short of expectations by $0.67 and decreasing from $4.79 the previous year, primarily due to a 34% drop in revenue compared to the prior year. The company's international revenues also decreased by 14.5% year-over-year, resulting in challenges related to operating leverage, despite cost-cutting efforts. Furthermore, anticipated tariff impacts are expected to further affect margins in the fourth quarter, combined with a lack of engaging product offerings, raising concerns about the company’s ability to navigate the shifting dynamics of the domestic toy market.