Kaman Earnings Preview

Kaman (NYSE: KAMN  ) didn't hit the Street's expectations last quarter, but investors hope that it will rebound this quarter. The company will unveil its latest earnings Feb. 27. Kaman conducts business in the aerospace and industrial distribution markets.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Kaman, with six of eight rating it a buy and the remainder rating it a hold. Analysts don't like Kaman as much as competitor RBC Bearings overall. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $394.7 million in revenue this quarter. That would represent a rise of 8.1% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.50 per share. Estimates range from $0.44 to $0.53.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 100% giving it an "outperform" rating. Most of the community backs the All-Stars, with 94.6% assigning it a rating of "outperform." Even with a robust four out of five stars, Kaman's CAPS rating falls a little short of the community's upbeat outlook.

Management:
Kaman's profit has risen year-over-year by an average of more than threefold over the past five quarters. A year-over-year revenue decrease last quarter snaps a streak of three consecutive quarters of revenue increases.

Now let's look at how efficient management is at running the business. Traditionally, margins serve as an illustration of how efficiently a company captures portions of sales dollars. Kaman has seen increasing gross margins year-over-year for the last four quarters. Gross margins reflect the total sales revenue retained after costs. Here is how Kaman has been doing for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

28.4%

27.6%

27.6%

29.6%

Operating Margin

5.7%

6.0%

6.2%

7.5%

Net Margin

3.5%

3.5%

3.6%

4.0%

For all our Kaman-specific analysis, including earnings and beyond, add Kaman to My Watchlist.

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Earnings estimates provided by Zacks.

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