Lakeland Industries, Inc. (NASDAQ:LAKE) just released its latest quarterly results and things are looking bullish. Statutory earnings performance was extremely strong, with revenue of US$41m beating expectations by 21% and earnings per share (EPS) of US$1.14, an impressive 115%ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the recent earnings report, the consensus from twin analysts covering Lakeland Industries is for revenues of US$134.1m in 2022, implying a definite 11% decline in sales compared to the last 12 months. Statutory earnings per share are expected to plummet 52% to US$1.73 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$130.9m and earnings per share (EPS) of US$1.20 in 2022. So it seems there's been a definite increase in optimism about Lakeland Industries' future following the latest results, with a great increase in the earnings per share forecasts in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 15% to US$31.50per share.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lakeland Industries' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 11%, a significant reduction from annual growth of 7.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Lakeland Industries is expected to lag the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Lakeland Industries' earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Lakeland Industries going out as far as 2022, and you can see them free on our platform here.
You still need to take note of risks, for example - Lakeland Industries has 1 warning sign we think you should be aware of.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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