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Jakks Pacific Reports Stronger Than Expected Q2 Earnings and Debt Reduction


Shares of Jakks Pacific are surging after the company announced better than anticipated earnings for the second quarter and successfully retired over $30 million in debt. The stock is up 8.8% in after-hours trading, currently at $19.43. Over the past year, however, shares had experienced a 20% decline.

In the same quarter last year, the toy and consumer-products manufacturer recorded a profit of $26.6 million, or $2.61 per share. This year, the company posted a profit of $6.5 million, or 58 cents per share. After adjusting for one-time items, the adjusted earnings came in at $1.26 per share, surpassing the analysts’ expectations of 51 cents per share, according to a FactSet poll.

Furthermore, Jakks Pacific witnessed a significant improvement in its gross margin, which amounted to 30.7%. This indicates a 310 basis point increase compared to the previous year’s second quarter.

To the company’s credit, it retired $30.2 million in debt during the quarter, four years ahead of maturity. This debt reduction has alleviated at least 11% of the company’s interest burden.

The positive financial results and prudent debt management demonstrate Jakks Pacific’s commitment to improving its financial health and delivering value to its shareholders.

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