Lakeland Industries (NASDAQ:LAKE) Releases Earnings Results, Misses Expectations By $0.44 EPS

Lakeland Industries (NASDAQ:LAKE) issued its earnings results on Wednesday. The medical instruments supplier reported ($0.50) EPS for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.44), FiscalAI reports. The firm had revenue of $50.14 million during the quarter, compared to analyst estimates of $51.36 million. Lakeland Industries had a negative net margin of 13.99% and a negative return on equity of 11.35%.

Here are the key takeaways from Lakeland Industries’ conference call:

• Sequential recovery continued: Q2 revenue rose 5.7% sequentially to $50.1 million, gross margin improved to 37%, and adjusted EBITDA excluding FX more than doubled sequentially to $2.7 million.
• Fire revenue increased approximately 12% sequentially and represented 52% of sales, with strong growth in helmets, hoods, and turnout gear. Management expects high-single-digit to low-double-digit organic fire growth as customers transition to updated NFPA standards.
• Lakeland secured tender and contract awards across nine countries, including qualification for multiple product categories under a seven-year U.K. fire PPE framework with potential total value of up to GBP 220 million across all suppliers; however, revenue timing will vary and some orders may not begin until future quarters.
• Results remained pressured by a 4.5% year-over-year sales decline, higher operating expenses, a $1.3 million FX headwind, and a $3.2 million non-cash goodwill impairment tied to LHD Germany. Management also expects some fire orders to shift into Q4 and is pursuing portfolio and footprint changes that could create near-term disruption.
• Balance-sheet trends improved, with $5.4 million of operating cash flow generated in the first half, inventory down $15.3 million year over year, cash of $17.9 million, and debt reduced to $28.7 million. Management remains focused on positive full-year operating cash flow and further margin improvement.

Lakeland Industries Stock Up 4.6%

Shares of NASDAQ:LAKE opened at $10.08 on Friday. Lakeland Industries has a 52 week low of $7.15 and a 52 week high of $18.00. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.34 and a current ratio of 2.98. The company’s fifty day moving average is $11.49 and its 200-day moving average is $10.33. The company has a market capitalization of $100.09 million, a PE ratio of -3.72 and a beta of 1.45.

Analysts Set New Price Targets

Several equities research analysts have issued reports on LAKE shares. Weiss Ratings raised shares of Lakeland Industries from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, June 29th. Roth Capital set a $17.00 price objective on shares of Lakeland Industries in a report on Thursday. Wall Street Zen raised shares of Lakeland Industries from a “sell” rating to a “hold” rating in a report on Sunday, July 12th. Finally, DA Davidson lifted their target price on shares of Lakeland Industries from $14.00 to $18.00 and gave the company a “buy” rating in a research report on Thursday, June 11th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $15.60.

Hedge Funds Weigh In On Lakeland Industries

Several institutional investors have recently added to or reduced their stakes in the company. Private Capital Management LLC grew its stake in Lakeland Industries by 2.8% during the fourth quarter. Private Capital Management LLC now owns 1,202,433 shares of the medical instruments supplier’s stock worth $10,630,000 after buying an additional 32,945 shares during the last quarter. Vanguard Group Inc. raised its position in Lakeland Industries by 2.3% in the 3rd quarter. Vanguard Group Inc. now owns 486,524 shares of the medical instruments supplier’s stock valued at $7,201,000 after purchasing an additional 10,764 shares during the last quarter. Geode Capital Management LLC raised its position in Lakeland Industries by 115.9% in the 2nd quarter. Geode Capital Management LLC now owns 217,786 shares of the medical instruments supplier’s stock valued at $2,964,000 after purchasing an additional 116,901 shares during the last quarter. Kennedy Capital Management LLC acquired a new position in Lakeland Industries in the third quarter worth $2,287,000. Finally, UBS Group AG boosted its stake in Lakeland Industries by 818.1% in the third quarter. UBS Group AG now owns 62,595 shares of the medical instruments supplier’s stock worth $926,000 after purchasing an additional 55,777 shares in the last quarter. 71.69% of the stock is owned by institutional investors.

Lakeland Industries Company Profile

Lakeland Industries, Inc (NASDAQ:LAKE) is a global provider of high-performance protective apparel and accessories designed to safeguard workers in industrial, healthcare, laboratory, and emergency response environments. The company’s expertise lies in producing garments that shield against chemical, biological, radiological, and thermal risks, supporting safety protocols in sectors such as oil and gas, petrochemicals, pharmaceuticals, and first responders.

The product portfolio encompasses both single-use and reusable solutions, including chemical protective coveralls, flame-resistant garments, arc flash clothing, medical isolation gowns, and cleanroom suits.