Industrial equipment manufacturer Kadant (NYSE: KAI) will be announcing earnings results this Tuesday after the bell. Here’s what investors should know.
Kadant beat analysts’ revenue expectations last quarter, reporting revenues of $312.9 million, up 22.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
Is Kadant a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Kadant’s revenue to grow 11.3% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Kadant rarely misses Wall Street’s revenue estimates.
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. Albany delivered year-on-year revenue growth of 33.7%, beating analysts’ expectations by 7.2%, and Crane reported revenues up 28.1%, topping estimates by 2.5%. Albany traded up 4% following the results while Crane was also up 2.9%.
Read our full analysis of Albany’s results here and Crane’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the general industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Kadant is down 1.2% during the same time and is heading into earnings with an average analyst price target of $357.50 (compared to the current share price of $264.00).
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