Have you looked into how Jakks Pacific (JAKK) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this toymaker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

While analyzing JAKK's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company's total revenue for the quarter stood at $130.74 million, increasing 2.6% year over year. Now, let's delve into JAKK's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

A Dive into JAKK's International Revenue Trends

During the quarter, Latin America contributed $4.29 million in revenue, making up 3.28% of the total revenue. When compared to the consensus estimate of $7.09 million, this meant a surprise of -39.46%. Looking back, Latin America contributed $22.63 million, or 7.04%, in the previous quarter, and $4.43 million, or 3.48%, in the same quarter of the previous year.

Canada generated $4.26 million in revenues for the company in the last quarter, constituting 3.26% of the total. This represented a surprise of -8.25% compared to the $4.64 million projected by Wall Street analysts. Comparatively, in the previous quarter, Canada accounted for $7.07 million (2.20%), and in the year-ago quarter, it contributed $4.69 million (3.68%) to the total revenue.

Of the total revenue, $1.12 million came from Australia and New Zealand during the last fiscal quarter, accounting for 0.85%. This represented a surprise of -33.57% as analysts had expected the region to contribute $1.68 million to the total revenue. In comparison, the region contributed $3.34 million, or 1.04%, and $1.49 million, or 1.17%, to total revenue in the previous and year-ago quarters, respectively.

Middle East and Africa accounted for 0.56% of the company's total revenue during the quarter, translating to $0.73 million. Revenues from this region represented a surprise of +150.35%, with Wall Street analysts collectively expecting $0.29 million. When compared to the preceding quarter and the same quarter in the previous year, Middle East and Africa contributed $0.91 million (0.28%) and $0.36 million (0.28%) to the total revenue, respectively.

During the quarter, Asia contributed $1.52 million in revenue, making up 1.16% of the total revenue. When compared to the consensus estimate of $1.47 million, this meant a surprise of +3.61%. Looking back, Asia contributed $2.35 million, or 0.73%, in the previous quarter, and $2.14 million, or 1.68%, in the same quarter of the previous year.

Of the total revenue, $25.36 million came from Europe during the last fiscal quarter, accounting for 19.40%. This represented a surprise of +104.51% as analysts had expected the region to contribute $12.4 million to the total revenue. In comparison, the region contributed $30.03 million, or 9.34%, and $17.99 million, or 14.12%, to total revenue in the previous and year-ago quarters, respectively.

International Revenue Predictions

It is projected by analysts on Wall Street that Jakks will post revenues of $93.74 million for the ongoing fiscal quarter, an increase of 4.1% from the year-ago quarter. The expected contributions from Latin America, Canada, Australia and New Zealand, Middle East and Africa, Asia and Europe to this revenue are 5.6%, 3.4%, 1.3%, 0.2%, 1% and 8.2%, translating into $5.21 million, $3.17 million, $1.17 million, $0.19 million, $0.91 million and $7.65 million, respectively.

For the full year, a total revenue of $696.29 million is expected for the company, reflecting an increase of 0.8% from the year before. The revenues from Latin America, Canada, Australia and New Zealand, Middle East and Africa, Asia and Europe are expected to make up 5.4%, 3.2%, 1.2%, 0.2%, 1% and 8.6% of this total, corresponding to $37.43 million, $22.29 million, $8.36 million, $1.43 million, $6.62 million and $59.92 million respectively.

Closing Remarks

Jakks' leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

At the moment, Jakks has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Examining the Latest Trends in Jakks' Stock Value

Over the preceding four weeks, the stock's value has appreciated by 5.5%, against a downturn of 0.5% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Discretionary sector, which counts Jakks among its entities, has appreciated by 10.1%. Over the past three months, the company's shares have seen an increase of 3% versus the S&P 500's 1.4% increase. The sector overall has witnessed an increase of 8.5% over the same period.

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This article originally published on Zacks Investment Research (zacks.com).

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