The 10-second takeaway
For the quarter ended June 29 (Q2), Kaydon beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share was unchanged. GAAP earnings per share was unchanged.
Margins expanded across the board.
Kaydon chalked up revenue of $117.3 million. The five analysts polled by S&P Capital IQ predicted a top line of $114.8 million on the same basis. GAAP reported sales were 5.7% lower than the prior-year quarter's $124.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.42. The five earnings estimates compiled by S&P Capital IQ forecast $0.38 per share. Non-GAAP EPS of $0.42 were the same as the prior-year quarter. GAAP EPS of $0.36 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 37.9%, 490 basis points better than the prior-year quarter. Operating margin was 15.4%, 190 basis points better than the prior-year quarter. Net margin was 10.0%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $118.6 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $466.2 million. The average EPS estimate is $1.68.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 319 members out of 326 rating the stock outperform, and seven members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Kaydon 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 Kaydon is outperform, with an average price target of $31.00.
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