Escalade (NASDAQ:ESCA) Releases Quarterly Earnings Results, Beats Expectations By $0.52 EPS

Escalade (NASDAQ:ESCAGet Free Report) announced its quarterly earnings results on Thursday. The company reported $0.68 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.52, Zacks reports. Escalade had a net margin of 6.43% and a return on equity of 8.97%. The firm had revenue of $57.70 million during the quarter, compared to analysts’ expectations of $57.60 million.

Here are the key takeaways from Escalade’s conference call:

  • Positive Sentiment: Second-quarter net sales rose 6% year over year to $57.7 million, driven by new archery products, the Gold Tip acquisition, and continued strength in safety, table tennis, and basketball.
  • Positive Sentiment: Gross margin expanded 146 basis points to 26.2%, while EBITDA increased to $13.2 million from $3.9 million, reflecting stronger operating leverage, favorable product mix, and better cost absorption.
  • Positive Sentiment: The company received a non-recurring $9.9 million refund for previously paid tariffs, which boosted quarterly operating profit and will be used to offset freight and commodity costs, fund promotions and innovation, and improve facilities.
  • Neutral Sentiment: Management expects continued profitable growth but remains cautious about inflation, energy costs, consumer spending, freight rates, and potential new tariffs; it does not expect near-term price increases and plans to use promotions to support demand.
  • Positive Sentiment: Escalade reduced long-term debt by nearly $1.8 million, increased cash by $3.3 million sequentially, and moved to a net cash position, supporting further strategic acquisitions alongside organic growth.

Escalade Stock Down 4.6%

Shares of NASDAQ ESCA traded down $0.96 during trading hours on Friday, hitting $19.91. 63,362 shares of the stock were exchanged, compared to its average volume of 33,997. Escalade has a 12 month low of $11.41 and a 12 month high of $21.32. The firm has a fifty day moving average price of $18.73 and a 200-day moving average price of $17.24. The company has a market cap of $275.03 million, a PE ratio of 17.87 and a beta of 0.59.

Escalade Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 13th. Investors of record on Tuesday, October 6th will be paid a dividend of $0.1525 per share. This represents a $0.61 annualized dividend and a dividend yield of 3.1%. The ex-dividend date is Tuesday, October 6th. Escalade’s payout ratio is 54.46%.

Hedge Funds Weigh In On Escalade

Several institutional investors and hedge funds have recently bought and sold shares of the company. Geode Capital Management LLC increased its position in shares of Escalade by 2.1% during the second quarter. Geode Capital Management LLC now owns 221,456 shares of the company’s stock worth $3,096,000 after purchasing an additional 4,455 shares in the last quarter. Raymond James Financial Inc. purchased a new position in Escalade during the 2nd quarter worth $29,000. Tower Research Capital LLC TRC grew its stake in Escalade by 439.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,622 shares of the company’s stock worth $51,000 after buying an additional 2,950 shares during the last quarter. JPMorgan Chase & Co. increased its position in Escalade by 13.1% during the 3rd quarter. JPMorgan Chase & Co. now owns 13,853 shares of the company’s stock valued at $174,000 after buying an additional 1,600 shares in the last quarter. Finally, Bridgeway Capital Management LLC increased its position in Escalade by 2.5% during the 3rd quarter. Bridgeway Capital Management LLC now owns 41,808 shares of the company’s stock valued at $526,000 after buying an additional 1,000 shares in the last quarter. 65.22% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

ESCA has been the subject of a number of recent research reports. Zacks Research downgraded shares of Escalade from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 4th. Weiss Ratings raised Escalade from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, July 24th. Finally, Wall Street Zen upgraded Escalade from a “buy” rating to a “strong-buy” rating in a report on Tuesday, April 14th. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, Escalade currently has a consensus rating of “Moderate Buy”.

Read Our Latest Stock Report on ESCA

Escalade Company Profile

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Escalade, Inc is a U.S.-based manufacturer and distributor of recreational equipment and specialty products for both consumer and commercial markets. Headquartered in Evansville, Indiana, the company operates through two principal business segments: Sporting Goods and Commercial Products. The Sporting Goods segment encompasses a diverse range of products such as hockey and lacrosse goal assemblies, fitness accessories, archery and hunting gear, and table tennis equipment. The Commercial Products segment focuses on seating solutions for restaurants, hospitality venues and other public spaces under the Top Seat brand, as well as storage, display products and industrial carts.

Within Sporting Goods, Escalade markets its products under proprietary brands including Bear® Archery, Gene St.

See Also

Earnings History for Escalade (NASDAQ:ESCA)

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