Jakks’ higher costs outpace higher sales
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Toy maker Jakks Pacific Inc. said Wednesday that second-quarter profit fell 17%, missing analyst expectations, as higher raw material costs offset higher sales.
Profit fell to $4.2 million, or 15 cents a share, from $5 million, or 17 cents, a year earlier, the Malibu-based company said. Revenue rose 12% to $145.3 million.
Analysts polled by Thomson Financial predicted profit of 22 cents a share on revenue of $136.9 million.
The company said action figures and dolls sold well, as did electronic products.
However, higher fuel, raw materials and transportation costs, as well as litigation and product-testing costs, hurt results, the company said.
The company lowered full-year guidance due to higher costs.
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