JAKKS Pacific (JAKK) Stock Forecast & Price Target

Jakks Pacific Inc. demonstrated a robust financial performance in 4Q24, highlighted by a 25% year-over-year increase in international revenue, attributed to significant investments in international expansion and licensing rights. Content-led revenue reached a record $41 million, up 41% year-over-year, driven by popular holiday movie releases such as Moana 2 and Sonic the Hedgehog 3, alongside strong demand for licensed products. Additionally, the company is positioned for continued growth with its expansion into the sporting goods channel and ongoing international initiatives, suggesting a favorable outlook for future performance.

The recent financial data indicates a negative outlook for Jakks Pacific, primarily driven by declining revenue trends and increased shares outstanding that negatively impact earnings per share (EPS). Notably, the company reported a five-year low in revenue from content-led sales in the first half of the year and adjusted EPS estimates downward for both 2025 and 2026, suggesting weakening profitability expectations. Additionally, the uncertainty surrounding tariffs and the potential for weaker gross margins, combined with a discounted valuation relative to 2026 EBITDA, further compounds the challenges facing the company.