JAKKS Pacific Backs 4Q Net View 16c/Shr, Had 'Great Year'
By Cecilia M. Kang
PALO ALTO (Dow Jones)--JAKKS Pacific Inc. (JAKK) said it is "very comfortable" with Wall Street's fourth-quarter earnings estimates.
In an interview with Dow Jones, President Stephen Berman said that while the overall toy industry was sluggish in 1998, the Malibu, Calif., toy maker had a "great year" and was voted vendor of the year by Toys 'R' Us Inc. (TOY) Tuesday.
JAKKS is scheduled to release results for the fourth quarter ending Dec. 31 between Feb. 22 and Feb. 26, he said.
The company's latest strategy is its foray into technology with an online store that will exclusively sell toys and collectibles from its four major brands - World Wrestling Federation action figures, Road Champs, Remco and Child Guidance preschool toys - that won't be available in retail stores. ....
....JAKKS also is in a venture with THQ Inc. (THQI) to develop World Wrestling Federation electronic games.
"I'm not sure how much the e-commerce plan will help the company," said Jeff Dabbs, an analyst at Kerchaeville & Co. "It will be a nice addition to revenue stream, but I'm more excited by the joint venture to develop video games."
Bhatia, of Southwest Securities, agrees that video games, one of the fastest-growing areas of the toy business, has the potential to substantially affect earnings starting 2000.
JAKKS was on the Red Chip Review's list of analysts' top stock picks for 1999.
"The company has done extremely well," said Dabbs, who holds a 'strong buy' rating on JAKKS' stock. "It has had overall revenue growth and potential earnings growth."
|
