JAKKS Pacific, Inc. JAKK reported strong second-quarter 2021 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. While the company’s net sales topped the Zacks Consensus Estimate for the fifth straight quarter, earnings surpassed the consensus mark for the fourth consecutive quarter.Stephen Berman, CEO of JAKKS Pacific said, “It has been well publicized within our industry and others the challenges being faced with the supply-chain and logistics, stretching from Asia to the U.S. and Europe. Nonetheless, our teams worked together across offices to deliver product to our customers as well as build up our domestic inventory in preparation for the second half of the year.”Q2 Earnings and RevenuesThe company reported adjusted loss of 38 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.66. The reported figure improved significantly from the prior-year loss of $4.38 per share.Revenues of $112.4 million beat the consensus mark of $92 million. The top line surged 43% on a year-over-year basis. This increase was primarily driven by higher sales of video games, including Nintendo, Sonic the Hedgehog, Disney Princess, and continued sales strength in Black & Decker. The company also witnessed strong sales of its own brands like Perfectly Cute and Redo Skateboard.Net sales at the company’s Toys/Consumer Products segment grew 45% globally on a year-over-year basis, whike sales of Disguise costumes increased 37% year over year.JAKKS Pacific, Inc. Price, Consensus and EPS Surprise JAKKS Pacific, Inc. price-consensus-eps-surprise-chart | JAKKS Pacific, Inc. QuoteOperating HighlightsIn the reported quarter, gross margin was 28.4%, up 710 basis points (bps) from the prior-year level. This marked the highest first-quarter gross margin percentage since 2016. Margins benefited from effective cost control and improved inventory management. Adjusted EBITDA was $5 million, improving considerably from a loss of $4.6 million reported in the prior-year quarter.Balance SheetAs of Jun 30, 2021, cash and cash equivalents (including restricted cash) were $38.3 million compared with $52.7 million as of Jun 30, 2020. Debt, non-current portion, net as of Jun 30, 2021, was $95.7 million compared with $174.2 million at the end of Jun 30, 2020.Zacks RankJAKKS Pacific — which shares space with Activision Blizzard, Inc. ATVI, Electronic Arts Inc. EA and Hasbro, Inc. HAS in the Zacks Toys - Games - Hobbies industry — currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Hasbro, Inc. (HAS): Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research