Industrial equipment manufacturer Kadant (NYSE: KAI) will be announcing earnings results this Tuesday after market close. Here’s what to look for.
Kadant beat analysts’ revenue expectations by 3.8% last quarter, reporting revenues of $255.3 million, down 7.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Kadant a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Kadant’s revenue to decline 4% year on year to $260.7 million, a reversal from the 11.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.16 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.6% on average.
Looking at Kadant’s peers in the general industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 36.2%, beating analysts’ expectations by 11.7%, and Honeywell reported revenues up 7%, topping estimates by 2.6%. GE Aerospace traded down 1.6% following the results while Honeywell was up 4.6%.
Read our full analysis of GE Aerospace’s results here and Honeywell’s results here.
There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 3.7% on average over the last month. Kadant is down 4% during the same time and is heading into earnings with an average analyst price target of $343.33 (compared to the current share price of $286.66).
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