The firm reported net income of $8.9m in the last three months of 2010 compared with a net loss of $1.9m a year earlier.
The year-ago period included a $13m charge related to the company's reorganisation, which includes ending lease obligations, severance, fixed-asset write-offs and ending other contracts.
Revenue dipped less than one per cent to $198 million from $198.8 million, but outstripped Wall Street estimates of $171.9 million.
For the full year, net income was $47m, compared with a loss of $385.5m in the prior year.
Annual revenues fell seven per cent to $747.3m from $803.7m, however.
Jakks predicts 2011 revenue of about $770 million to $775 million. For the first quarter, the company expects to post a loss, on revenue of $60 million to $65 million, while analysts forecaset higher revenues of around $84.9m.