Is JAKK's Q3 2024 EPS growth sustainable long-term?

**JAKK's Q3 2024 EPS growth may not be sustainable long-term**. Here's why:

1. **Decline in Net Margin**: The net margin for JAKK has shown a decline from 11.44% in 2022 to 4.95% in 2024. This trend suggests that the company's profitability is under pressure, which could impact the sustainability of EPS growth.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|JAKK|JAKK.O|Jakks Pacific|2022 Q1|44.175423112245504|1.20881E8|185|
|JAKK|JAKK.O|Jakks Pacific|2022 Q2|96.18876388493307|2.20422E8|185|
|JAKK|JAKK.O|Jakks Pacific|2022 Q3|36.310807446076716|3.22998E8|185|
|JAKK|JAKK.O|Jakks Pacific|2022 Q4|-29.83443638143474|1.31886E8|185|
|JAKK|JAKK.O|Jakks Pacific|2023 Q1|-11.082800440102249|1.07484E8|185|
|JAKK|JAKK.O|Jakks Pacific|2023 Q2|-24.266634002050612|1.66933E8|185|
|JAKK|JAKK.O|Jakks Pacific|2023 Q3|-4.103430980996786|3.09744E8|185|
|JAKK|JAKK.O|Jakks Pacific|2023 Q4|-3.404455362964985|1.27396E8|185|
|JAKK|JAKK.O|Jakks Pacific|2024 Q1|-16.195898924491086|9.0076E7|185|
|JAKK|JAKK.O|Jakks Pacific|2024 Q2|-10.970868552053819|1.48619E8|185|

|code|Ticker|Name|Date|Net Profit Margin YoY|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|
|JAKK|JAKK.O|Jakks Pacific|2022 Q1|88.72682651346659|-3.2338|185|
|JAKK|JAKK.O|Jakks Pacific|2022 Q2|132.77283945662862|6.5332|185|
|JAKK|JAKK.O|Jakks Pacific|2022 Q3|1362.9711751662971|7.9744|185|
|JAKK|JAKK.O|Jakks Pacific|2022 Q4|1306.740506329114|11.4399|185|
|JAKK|JAKK.O|Jakks Pacific|2023 Q1|-52.99956707279362|-4.9477|185|
|JAKK|JAKK.O|Jakks Pacific|2023 Q2|-95.18153431702689|0.3148|185|
|JAKK|JAKK.O|Jakks Pacific|2023 Q3|5.15524678972713|8.3855|185|
|JAKK|JAKK.O|Jakks Pacific|2023 Q4|-53.17878652785426|5.3563|185|
|JAKK|JAKK.O|Jakks Pacific|2024 Q1|-219.18265052448612|-15.7922|185|
|JAKK|JAKK.O|Jakks Pacific|2024 Q2|-1292.2808132147395|-3.7533|185|

|code|Ticker|Name|Date|Basic Earnings per Share YoY|Basic Earnings per Share|market_code|
|---|---|---|---|---|---|---|
|JAKK|JAKK.O|Jakks Pacific|20220331|90.52863436123349|-0.43|185|
|JAKK|JAKK.O|Jakks Pacific|20220630|133.52769679300292|2.3|185|
|JAKK|JAKK.O|Jakks Pacific|20220930|1071.4285714285713|5.44|185|
|JAKK|JAKK.O|Jakks Pacific|20221231|1052.0408163265306|9.33|185|
|JAKK|JAKK.O|Jakks Pacific|20230331|-34.883720930232556|-0.58|185|
|JAKK|JAKK.O|Jakks Pacific|20230630|-98.26086956521739|0.04|185|
|JAKK|JAKK.O|Jakks Pacific|20230930|-10.84558823529413|4.85|185|
|JAKK|JAKK.O|Jakks Pacific|20231231|-60.342979635584136|3.7|185|
|JAKK|JAKK.O|Jakks Pacific|20240331|-131.6034482758621|-1.3433|185|
|JAKK|JAKK.O|Jakks Pacific|20240630|-1975|-0.75|185|

2. **Earnings Variations**: JAKK's earnings have been volatile, with a significant drop in EPS from $3.14 in 2023 to $0.65 in 2024. This volatility does not provide a stable foundation for long-term EPS growth sustainability.
3. **Revenue Growth Challenges**: While JAKK has beaten revenue estimates in some quarters, such as Q3 2024, overall revenue growth has been sluggish, with a slight increase in Q4 and full-year 2024 net sales. Lack of consistent revenue growth can hinder the sustainability of EPS growth.
4. **Strategic Focus**: JAKK has been focusing on international growth and product development, which are positive steps. However, the effectiveness of these strategies in sustaining EPS growth over the long term is yet to be seen.
5. **Market Conditions**: The toy and consumer products industry is highly competitive and can be affected by market trends, consumer preferences, and economic conditions. These factors can impact the sustainability of EPS growth.

In conclusion, while JAKK has made some positive strides in international growth and product development, the decline in net margin, earnings volatility, and lack of consistent revenue growth suggest that the company's Q3 2024 EPS growth may not be sustainable in the long term. The company will need to address these challenges and maintain a stable revenue growth trajectory to ensure the sustainability of its EPS growth.