Kaydon Earnings: Here’s Why Shares are Up Now

Kaydon Corporation (NYSE:KDN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.40%.

Kaydon Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.42 in the quarter as EPS of $0.42 in the year-earlier quarter.

Revenue: Decreased 5.68% to $117.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kaydon Corporation reported adjusted EPS income of $0.42 per share. By that measure, the company beat the mean analyst estimate of $0.38. It beat the average revenue estimate of $114.81 million.

Quoting Management: James O’Leary, Chairman and Chief Executive Officer commented, “The second quarter of 2013 was solid as we continue to successfully manage the variables within our control. Relative to the comparable quarter of 2012, we saw improved margins, free cash flow and orders despite a still challenging economic environment. In aggregate, bookings for our industrial businesses were solid with trends consistent with this year’s first quarter. As expected, military bookings were lower due to anticipated reductions in military activity and timing. However, this was more than offset by strong wind energy bookings in the quarter, supporting our view that the wind energy business has bottomed and will continue to show signs of improvement as we look a few quarters forward.”

Key Stats (on next page)…

Revenue increased 5.99% from $110.67 million in the previous quarter. EPS increased 13.51% from $0.37 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 $0.45 to a profit $0.43. For the current year, the average estimate has moved down from a profit of $1.66 to a profit of $1.64 over the last ninety days.

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