Industrial equipment manufacturer Kadant (NYSE: KAI) will be reporting results this Tuesday after market close. Here’s what you need to know.
Kadant beat analysts’ revenue expectations last quarter, reporting revenues of $281.5 million, up 17.7% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and 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, the market is expecting Kadant’s revenue to grow 17.2% year on year, a reversal from the 7.1% decrease it recorded 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 Q2 results, giving us a hint as to what we can expect. Columbus McKinnon delivered year-on-year revenue growth of 125%, beating analysts’ expectations by 5.9%, and GE Aerospace reported revenues up 24.5%, topping estimates by 6%. Columbus McKinnon traded up 31.1% following the results while GE Aerospace was down 3.2%.
Read our full analysis of Columbus McKinnon’s results here and GE Aerospace’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the 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 5% on average over the last month. Kadant is down 1.9% during the same time and is heading into earnings with an average analyst price target of $343 (compared to the current share price of $307.50).
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