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Lakeland Industries' Q3 Earnings Miss Estimates, Revenues Rise Y/Y

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Lakeland Industries, Inc. (LAKE - Free Report) reported third-quarter fiscal 2025 (ended October 2024) adjusted earnings of a penny per share, which missed the Zacks Consensus Estimate of 40 cents. The bottom line increased 97.1% year over year.

Lakeland’s total revenues of $46 million beat the consensus estimate of $43 million. Also, the top line increased 44.5% year over year. Organic revenues increased 7.3% to $34 million in the fiscal third quarter.

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Inside the Headlines

Revenues from the domestic operations increased 2% year over year to $15.4 million. The increase was driven by a rebound in U.S. sales during the quarter.

Revenues from international operations increased 83.3% to $30.4 million due to strong momentum across Latin American, European and Asian markets.

LAKE’s Margin Profile

Lakeland’s cost of sales increased 48.6% year over year to $27.2 million. Operating expenses totaled $17.8 million, up 83.5% year over year.

LAKE recorded an operating income of $807 million, down from $3,621 million in the year-ago quarter. The operating margin decreased to 1.8% from 11.4% in the year-ago quarter.

Balance Sheet and Cash Flow

At the end of the fiscal third quarter, Lakeland had cash and cash equivalents of $15.8 million compared with $25.2 million at the end of Jan. 31, 2024. Long-term debt was $31 million at the end of the fiscal third quarter.

In the first nine months of fiscal 2025, LAKE used net cash of $12.5 million from operating activities against $7.7 million generated in the year-ago period.

In the same period, the company paid dividends worth approximately $0.7 million, down 3% year over year.

LAKE Reaffirms Outlook

For fiscal 2025, management continues to expect revenues of at least $165 million compared with a year ago. This revenue guidance includes the contributions of its recently announced LHD, Jolly Scarpe and Pacific Helmets acquisitions.

Adjusted EBITDA is expected to be at least $18 million, which includes the impacts from its announced LHD, Jolly Scarpe and Pacific Helmets acquisitions.

Zacks Rank & Stocks to Consider

LAKE presently carries a Zacks Rank #3 (Hold).

Some better-ranked companies are discussed below:

Alarm.com Holdings (ALRM - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ALRM delivered a trailing four-quarter average earnings surprise of 19.6%. In the past 60 days, the Zacks Consensus Estimate for Alarm.com’s 2024 earnings has increased 7.2%.

Allegion plc (ALLE - Free Report) presently carries a Zacks Rank #2 (Buy). It delivered a trailing four-quarter average earnings surprise of 9.9%. In the past 60 days, the Zacks Consensus Estimate for ALLE’s 2024 earnings has increased 2.1%.

MSA Safety Incorporated (MSA - Free Report) currently carries a Zacks Rank of 2. MSA delivered a trailing four-quarter average earnings surprise of 5.8%. In the past 60 days, the consensus estimate for MSA Safety’s 2024 earnings has increased 0.7%.

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