Industrial equipment manufacturer Kadant (NYSE: KAI) will be reporting earnings tomorrow after market close. Here’s what to look for.
Kadant beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $271.6 million, up 11.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Kadant a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kadant’s revenue to grow 8% year on year to $257.8 million, improving from the 2.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kadant has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.1% on average.
Looking at Kadant’s peers in the general industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 4.5%, beating analysts’ expectations by 3.9%, and Crane reported revenues up 12.3%, topping estimates by 1.2%. GE Aerospace traded up 4.5% following the results while Crane was also up 12.3%.
Read our full analysis of GE Aerospace’s results here and Crane’s results here.
There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 2.4% on average over the last month. Kadant is up 5.3% during the same time and is heading into earnings with an average analyst price target of $341.67 (compared to the current share price of $367.05).
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