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Lakeland (LAKE) to Report Q2 Earnings: What's in the Cards?

Zacks Equity Research

Lakeland Industries, Inc. LAKE is scheduled to release second-quarter fiscal 2021 (ended Jul 31, 2020) results on Sep 9, after the closing bell.

The company delivered better-than-expected results in the last reported quarter. Its earnings of $1.07 per share surpassed the Zacks Consensus Estimate of 16 cents.

In the past three months, shares of this personal protective equipment provider have gained 32.6% compared with the industry’s growth of 7.5%.

Key Factors & Estimates for Q2

Diversified manufacturing operations globally, reliable supply chain, effective management team, and improving production and operational efficiency enabled Lakeland to perform well despite the pandemic-hit operating environment in the first quarter of fiscal 2021 (ended Apr 30, 2020). This trend might have continued in the fiscal second-quarter as well and get reflected in the quarterly results.

Also, investments to enhance manufacturing capacity (new facilities started in India and Vietnam) and expansive geographical presence are other tailwinds that might have aided the fiscal second-quarter performance. Further, rising popularity of new products — like high performance wear products — might get reflected in the to-be-reported quarter’s results.

Talking of the demand prospects, personal protective gears related to the coronavirus outbreak and products required by existing industrial customers are likely to have stayed strong in the second quarter. It is worth mentioning here that Lakeland added more than 150 new names in its global industrial end users portfolio in the first quarter of fiscal 2021. Also, it had nearly 180 additional customers in the pharmaceutical and healthcare arena.

The company anticipated demand to be solid in the second quarter of fiscal 2021.

Meanwhile, price increases from suppliers and challenging logistics may have weighed on the fiscal second-quarter performance.

The Zacks Consensus Estimate for the fiscal second-quarter revenues stands at $37 million, suggesting an increase of 37% from the year-ago reported figure. However, the figure indicates a decline of 19.6% from the previous quarter. The estimate for earnings is pegged at 53 cents per share, suggesting an increase of 211.8% from the year-ago quarter’s reported figure but 50.5% decline from the previous quarter.

Earnings Whispers

Our proven model does not suggest an earnings beat for Lakeland this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Lakeland has an Earnings ESP of +0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 53 cents.

Lakeland Industries, Inc. Price, Consensus and EPS Surprise

Lakeland Industries, Inc. Price, Consensus and EPS Surprise
Lakeland Industries, Inc. Price, Consensus and EPS Surprise

Lakeland Industries, Inc. price-consensus-eps-surprise-chart | Lakeland Industries, Inc. Quote

Zacks Rank: Lakeland currently carries a Zacks Rank #3.

Stocks to Consider

Here are some companies that you may want to consider as according to our model, these have the right combination of elements to beat on earnings:

Kaman Corp. KAMN currently has an Earnings ESP of +1.27% and a Zacks #1 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Roper Technologies, Inc. ROP presently has an Earnings ESP of +0.17% and a Zacks Rank of 2.

Pentair plc PNR currently has an Earnings ESP of +9.19% and a Zacks Rank #2.

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