ESCA Earnings Prediction
The chart below shows how ESCA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ESCA sees a -1.91% change in stock price 10 days leading up to the earnings, and a -0.96% change 10 days following the report. On the earnings day itself, the stock moves by -1.14%. This data can give you a slight idea of what to expect for the next quarter's release.
ESCA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
67.74M
-7.66%
8.34%
Gross Margin
23.24%
-2.68%
0.09%
Operating Margin
6.01%
-31.63%
-15.71%
Net Margin
8.37%
43.57%
83.96%
EPS
0.40
29.03%
100.00%
No Data Available
ESCA Earnings Analysis
Escalade Inc Corporation (ESCA.O) Earnings Conference Call
Positive
Gross Margin Enhancement: 1. Gross Margin Improvement: Excluding nonrecurring expenses, gross margin improved by 265 basis points to 27.4% compared to the prior year.
Cash Flow Performance: 2. Strong Cash Flow Generation: The company generated $10.5 million in cash from operations during the quarter, demonstrating effective cash management.
Debt Repayment Achievement: 3. Debt Reduction: Nearly $14 million of debt was repaid, resulting in a net leverage ratio of 1.1 times trailing 12-month EBITDA, below the long-term target range.
Asset Sale Gain Impact: 4. Significant Gain from Asset Sale: A $3.9 million gain was recognized from the sale of the Rosarito, Mexico facility, positively impacting operating income.
E-commerce Volume Surge: 5. E-commerce Growth: Direct-to-consumer e-commerce volumes increased by 29% year-over-year, indicating strong consumer engagement and brand loyalty.
Negative
Net Sales Decline: 1. Declining Net Sales: Escalade reported a 7.7% decline in net sales year-over-year, totaling $67.7 million for Q3 2024.
Decline in Operating Cash Flow: 2. Decreased Operating Cash Flow: Total cash provided by operations decreased to $10.5 million in Q3 2024, down from $14.8 million in the prior year period.
Rising SG&A Expenses: 3. Increased SG&A Expenses: Selling, general and administrative expenses rose by 6% or $0.6 million compared to the prior year, reaching $11.1 million.
Weak Cash Position: 4. Low Cash Reserves: As of September 30, 2024, the company had only $426,000 in total cash and equivalents, indicating a weak cash position.
Borrowing Capacity Reduction: 5. Reduced Borrowing Capacity: The company amended its senior secured revolving credit facility, reducing its borrowing capacity by $15 million, which may limit future financial flexibility.
ESCA FAQs
How does ESCA typically perform around its earnings report dates?
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ESCA Earning Call Sentiment
Escalade, Incorporated (ESCA) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ESCA.O
-4.31%Positive
The earnings call summary shows positive elements like a new partnership with Adidas, increased e-commerce growth, and higher gross margin expectations. Despite a decline in net sales, the company is managing debt effectively and maintaining dividends, indicating financial stability. The Q&A section highlights operational adjustments and cost structure improvements, which are necessary for future growth. Overall, the positive factors outweigh the risks, suggesting a likely positive stock price movement in the short term.
