Kadant (NYSE:KAI) Issues Q1 2020 After-Hours Earnings Guidance

Kadant (NYSE:KAI) updated its first quarter 2020
After-Hours earnings guidance on Wednesday. The company provided EPS guidance of 0.80-1.08 for the period, compared to the Thomson Reuters consensus EPS estimate of $1.28. The company issued revenue guidance of $153-163 million, compared to the consensus revenue estimate of $169.59 million.Kadant also updated its FY 2020
After-Hours guidance to 5.00-5.10 EPS.

A number of brokerages have recently issued reports on KAI. DA Davidson reiterated a neutral rating and set a $97.00 price target on shares of Kadant in a research note on Friday. Barrington Research dropped their price target on shares of Kadant from $107.00 to $105.00 and set an outperform rating on the stock in a research note on Friday. ValuEngine upgraded shares of Kadant from a sell rating to a hold rating in a research note on Thursday. Sidoti dropped their price target on shares of Kadant from $107.00 to $91.00 and set a neutral rating on the stock in a research note on Thursday. Finally, Zacks Investment Research upgraded shares of Kadant from a sell rating to a hold rating in a research note on Tuesday, November 5th. Five equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company. The stock has an average rating of Hold and a consensus target price of $97.22.

KAI traded up $4.42 on Friday, hitting $100.24. 137,241 shares of the company were exchanged, compared to its average volume of 73,008. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.27 and a current ratio of 2.03. The business’s fifty day moving average is $108.64 and its 200 day moving average is $94.71. Kadant has a fifty-two week low of $77.67 and a fifty-two week high of $114.05. The firm has a market capitalization of $1.25 billion, a P/E ratio of 18.56 and a beta of 1.32.

Kadant (NYSE:KAI) last issued its earnings results on Wednesday, February 12th. The industrial products company reported $1.32 earnings per share for the quarter, topping the consensus estimate of $1.28 by $0.04. Kadant had a net margin of 9.00% and a return on equity of 16.76%. The company had revenue of $182.70 million for the quarter, compared to analyst estimates of $173.38 million. During the same period in the prior year, the business posted $1.66 earnings per share. The firm’s revenue for the quarter was up 11.5% compared to the same quarter last year. Analysts forecast that Kadant will post 5.35 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Thursday, February 6th. Shareholders of record on Thursday, January 9th were given a dividend of $0.23 per share. The ex-dividend date of this dividend was Wednesday, January 8th. This represents a $0.92 annualized dividend and a yield of 0.92%.

In other Kadant news, Chairman Jonathan W. Painter sold 3,804 shares of the company’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $94.54, for a total transaction of $359,630.16. Following the transaction, the chairman now directly owns 96,311 shares in the company, valued at $9,105,241.94. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Michael J. Mckenney sold 4,188 shares of the company’s stock in a transaction dated Wednesday, December 11th. The stock was sold at an average price of $100.65, for a total transaction of $421,522.20. Following the transaction, the chief financial officer now owns 17,557 shares in the company, valued at $1,767,112.05. The disclosure for this sale can be found here. Insiders have sold 57,391 shares of company stock worth $6,091,881 over the last 90 days. 5.50% of the stock is currently owned by company insiders.

About Kadant

Kadant Inc supplies equipment and critical components used in papermaking, paper recycling, recycling and waste management, and other process industries worldwide. The company operates in two segments, Papermaking Systems and Wood Processing Systems. The Papermaking Systems segment develops, manufactures, and markets custom-engineered stock-preparation systems and equipment for the preparation of wastepaper for conversion into recycled paper and balers, as well as related equipment used in the processing of recyclable and waste materials; and fluid-handling systems and equipment used in industrial piping systems to compensate for movement, as well as to transfer fluid, power, and data.

Further Reading: The limitations of an equal weight rating

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