Why Escalade (ESCA) Stock Is Getting A Boost Today

NEW YORK (TheStreet) -- Shares of Escalade Inc.  (ESCA) are up 1.31% to $16.25 after it announced it sold its Print Finishing business, including Martin Yale product line, to an unaffiliated third party, as of June 30.

Financial terms of the deal were not disclosed.

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Separately, TheStreet Ratings team rates ESCALADE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate ESCALADE INC (ESCA) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • ESCA's revenue growth has slightly outpaced the industry average of 5.3%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ESCA's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.07, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 33.33% and other important driving factors, this stock has surged by 175.24% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ESCA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ESCALADE INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, ESCALADE INC turned its bottom line around by earning $0.71 versus -$0.37 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Leisure Equipment & Products industry average. The net income increased by 38.6% when compared to the same quarter one year prior, rising from $1.62 million to $2.25 million.
  • You can view the full analysis from the report here: ESCA Ratings Report
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