Kadant (NYSE: KAI) reported earnings on Feb. 26. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 29 (Q4), Kadant missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.

Gross margins grew, operating margins contracted, net margins expanded.

Revenue details
 Kadant logged revenue of $78.1 million. The two analysts polled by S&P Capital IQ predicted sales of $85.8 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $97.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.44. The three earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. Non-GAAP EPS of $0.44 for Q4 were 25% lower than the prior-year quarter's $0.59 per share. (The prior-year quarter included $0.10 per share in earnings from discontinued operations.) GAAP EPS of $0.84 for Q4 were 16% lower than the prior-year quarter's $1.00 per share. (The prior-year quarter included $0.10 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 43.0%, 440 basis points better than the prior-year quarter. Operating margin was 8.6%, 120 basis points worse than the prior-year quarter. Net margin was 12.3%, 10 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $81.3 million. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $349.3 million. The average EPS estimate is $2.40.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 167 members out of 180 rating the stock outperform, and 13 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 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 $30.67.

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