NEW YORK (TheStreet) -- Shares of Lakeland Industries Inc. (LAKE) - Get Report are soaring, up 32.26% to $15.32, in early market trading Thursday after the company released an update to its business activity late yesterday, saying it received orders for one million of its protective suits in the wake of a worsening Ebola outbreak.
The company first announced the global availability of its suits on September 12th, as it increased its manufacturing capacity of specialty protective suits for healthcare workers.
Lakeland said monthly production capacity for its ChemMAX and MicroMAX protective suit lines are now up 50% from August of 2014, and is on track for a 100% increase January 2015.
In addition to the suits, the company received orders for hoods, gloves and foot coverings.
"Recent developments have enabled us to strengthen our balance sheet, increase forward cash flow from the elimination of interest service on expensive debt, and increase production capacity to contribute to the fight against the spread of Ebola which has led to a material improvement in our business," said CEO Christopher Ryan in a statement.
The Ronkonkoma, NY-based company makes hazmat suits and other protective gear that healthcare workers use to prevent contracting the virus.
Separately, TheStreet Ratings team rates LAKELAND INDUSTRIES INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAKELAND INDUSTRIES INC (LAKE) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, LAKE's share price has jumped by 172.98%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- LAKELAND INDUSTRIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, LAKELAND INDUSTRIES INC turned its bottom line around by earning $0.00 versus -$4.88 in the prior year.
- Net operating cash flow has significantly decreased to -$1.90 million or 459.11% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 109.3% when compared to the same quarter one year ago, falling from $4.17 million to -$0.39 million.
- You can view the full analysis from the report here: LAKE Ratings Report