It's been a good week for Lakeland Industries, Inc. (NASDAQ:LAKE) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.8% to US$11.03. Lakeland Industries beat revenue expectations by 7.2%, recording sales of US$27m. Earnings per share (EPS) came in at US$0.14, some 3.4% short of analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what analysts are forecasting for next year.
Taking into account the latest results, the most recent consensus for Lakeland Industries from twin analysts is for revenues of US$111.9m in 2021, which is a satisfactory 6.9% increase on its sales over the past 12 months. Earnings per share are expected to jump 3593% to US$0.69. Yet prior to the latest earnings, analysts had been forecasting revenues of US$106.2m and earnings per share (EPS) of US$0.72 in 2021. Overall it looks as though analysts were a bit mixed on the latest results. Although there was a a satisfactory to revenue, the consensus also made a minor downgrade to to its earnings per share forecasts.
There's been no major changes to an analyst price target of US$15.50, suggesting that the impact of higher forecast sales and lower earnings won't result in a meaningful change to the business' valuation.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. Analysts are definitely expecting Lakeland Industries's growth to accelerate, with the forecast 6.9% growth ranking favourably alongside historical growth of 1.2% per annum over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 7.1% next year. Lakeland Industries is expected to grow at about the same rate as its market, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The biggest concern with the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lakeland Industries. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. The consensus price target held steady at US$15.50, with the latest estimates not enough to have an impact on analysts' estimated valuations.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.
We also provide an overview of the Lakeland Industries Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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