Tuesday, February 26, 2013

Kadant Beats Expectations But Takes A Step Back Anyway

Kadant (NYSE: KAI  ) reported earnings on Feb. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Kadant missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.

Gross margins grew, operating margins contracted, net margins expanded.

Revenue details
Kadant logged revenue of $78.1 million. The two analysts polled by S&P Capital IQ predicted sales of $85.8 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $97.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.44. The three earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. Non-GAAP EPS of $0.44 for Q4 were 25% lower than the prior-year quarter's $0.59 per share. (The prior-year quarter included $0.10 per share in earnings from discontinued operations.) GAAP EPS of $0.84 for Q4 were 16% lower than the prior-year quarter's $1.00 per share. (The prior-year quarter included $0.10 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.0%, 440 basis points better than the prior-year quarter. Operating margin was 8.6%, 120 basis points worse than the prior-year quarter. Net margin was 12.3%, 10 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $81.3 million. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $349.3 million. The average EPS estimate is $2.40.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 167 members out of 180 rating the stock outperform, and 13 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Kadant a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kadant is outperform, with an average price target of $30.67.

Looking for alternatives to Kadant? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

  • Add Kadant to My Watchlist.

No comments:

Post a Comment