Kadant Earnings: Everything You Must Know Now

Kadant Inc. (NYSE:KAI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Kadant Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 8.93% to $0.51 in the quarter versus EPS of $0.56 in the year-earlier quarter.

Revenue: Decreased 0.98% to $82.17 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kadant Inc. reported adjusted EPS income of $0.51 per share. By that measure, the company missed the mean analyst estimate of $0.56. It missed the average revenue estimate of $82.65 million.

Quoting Management: “We were pleased we exceeded our diluted EPS guidance on an adjusted basis,” said Jonathan W. Painter, president and chief executive officer of Kadant. “We also had excellent gross margins and cash flows in the second quarter of 2013. Gross profit margins in the second quarter of 2013 were a record 48.6 percent. Operating cash flows from continuing operations were $11.1 million in the second quarter of 2013, increasing 30 percent over the second quarter of 2012. We ended the quarter with net cash (cash less debt) of $48.5 million, an increase of 61 percent over $30.1 million in the second quarter of 2012. Significantly, our operating cash flows from continuing operations over the last twelve months were $44.0 million, reflecting the strength of our business.”

Key Stats (on next page)…

Revenue increased 7.83% from $76.2 million in the previous quarter. EPS increased 8.51% from $0.47 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.54 to a profit $0.52. For the current year, the average estimate has moved up from a profit of $1.99 to a profit of $2.09 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)