Why Escalade (ESCA) Stock Is Slumping Today

NEW YORK (TheStreet) -- Shares of Escalade Inc. (ESCA) are lower by -5.65% to $14.20 in mid-morning trading on Monday, after the company reported a net loss for the 2014 second quarter of -$8.1 million, or -57 cents per diluted share, compared to a net income of $2.6 million, or 19 cents per diluted share for the same period last year.

The company, which operates in two segments: sporting goods and information security, said its net loss was the result of its decision to exit the information security business.

The company announced today that it's shifting its focus to concentrate solely on its sporting goods segment.
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Revenue for the sporting goods business remained flat at $38 million for the most recent quarter.

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 a few notable strengths, 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 no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

You can view the full analysis from the report here: ESCA Ratings Report
ESCA Chart ESCA data by YCharts

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