Why JAKKS Pacific (JAKK) Is Soaring on Wednesday

NEW YORK (TheStreet) -- Toymaker JAKKS Pacific (JAKK) is soaring on Wednesday after fourth-quarter earnings and sales came in better than expected.

By early afternoon, shares had added 22.7% to $7.24. Trading volume of 2.6 million was more than nine times its three-month daily average.

Quarterly revenue of $137.7 million was 3.1% higher than a year earlier and beat expectations by $8.8 million, according to analysts surveyed by Thomson Reuters.

The company recorded a net loss of $16.1 million, or 73 cents a share, compared to a loss of $119.5 million, or $5.45 a share, in the year-ago quarter. Analysts had anticipated a wider loss of 82 cents a share.

"Our sales results for the fourth quarter of 2013 contributed to our exceeding our revised sales and earnings guidance for the full year," said CEO Stephen Berman in a statement.

The company which creates action figures, dolls, costumers and plush toys has licenses to internationally known trademarks such as Disney, Nickelodeon and Cabbage Patch Kids. Disney Princess, Disney's Frozen, and Sofia the First proved popular brands over the quarter.

"We are expecting International growth in 2014 through more product offerings in our current territories and new territories for distribution. We continue to nurture our long-standing relationships with key licensors and retailers in 2014 and demonstrate our commitment to product innovation," said Berman.

Over fiscal 2014, the company anticipates sales between $633 million and $640 million with earnings of 30 cents to 40 cents a share. Analysts had expected per-share earnings of 11 cents.

"The improvement in earnings in 2014 reflects the impact of cost-saving and other margin improvement initiatives undertaken in 2013," the company said.

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