The 10-second takeaway
For the quarter ended June 30 (Q2), Kadant missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly, and GAAP earnings per share contracted.
Margins shrank across the board.
Kadant booked revenue of $83.0 million. The three analysts polled by S&P Capital IQ anticipated sales of $86.6 million on the same basis. GAAP reported sales were 0.6% higher than the prior-year quarter's $82.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.56. The four earnings estimates compiled by S&P Capital IQ averaged $0.54 per share. GAAP EPS of $0.56 for Q2 were 5.1% lower than the prior-year quarter's $0.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.7%, 200 basis points worse than the prior-year quarter. Operating margin was 11.3%, 170 basis points worse than the prior-year quarter. Net margin was 7.9%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $83.2 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $344.4 million. The average EPS estimate is $2.17.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 167 members rating the stock outperform and 15 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Kadant a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kadant is outperform, with an average price target of $32.00.
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