The 10-second takeaway
For the quarter ended March 30 (Q1), Kadant beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share contracted significantly.
Gross margins grew, operating margins contracted, net margins contracted.
Kadant logged revenue of $76.2 million. The two analysts polled by S&P Capital IQ expected sales of $73.7 million on the same basis. GAAP reported sales were 9.4% lower than the prior-year quarter's $84.1 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 $0.47. The three earnings estimates compiled by S&P Capital IQ averaged $0.35 per share. GAAP EPS of $0.47 for Q1 were 22% lower than the prior-year quarter's $0.60 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.3%, 170 basis points better than the prior-year quarter. Operating margin was 9.7%, 300 basis points worse than the prior-year quarter. Net margin was 6.9%, 150 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $83.9 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $329.6 million. The average EPS estimate is $2.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 163 members out of 176 rating the stock outperform, and 13 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Kadant a green thumbs-up, and one 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 $33.00.
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