Jakks Posts Profit Rise but Misses Estimates

Toy maker Jakks Pacific Inc. posted higher second-quarter earnings but missed Wall Street estimates.

Net income rose to $11.6 million, or 39 cents a share, in the quarter ended June 30. That compares with $6 million, or 22 cents, a year earlier.

Sales rose 16% to $127.1 million.

Malibu-based Jakks said results were helped by its June 2004 acquisition of Play Along, the maker of Care Bears and Cabbage Patch Kids.

Analysts on average had expected Jakks to earn 41 cents a share on sales of $136.8 million, according to Reuters Estimates.

Jakks, which also sells licensed arts and crafts merchandise, has been growing quickly through acquisitions in the last several years. In addition to Play Along, it recently bought a line of pet toys.

Jakks shares fell $1.38, or nearly 7%, to $18.66.