FY2025 EPS Estimates for Kadant Cut by Barrington Research

Key Points

• Barrington Research has reduced Kadant's FY2025 earnings per share estimate from $9.05 to $8.97, maintaining an "Outperform" rating with a target price of $380.00.
• Kadant recently reported $2.31 EPS for Q2, exceeding analysts' expectations, but their quarterly revenue decreased by 7.3% compared to the previous year.
• The company has initiated a $50 million stock repurchase plan, signaling management's belief that its shares are undervalued.

Kadant Inc (NYSE:KAI - Free Report) - Investment analysts at Barrington Research cut their FY2025 earnings per share estimates for Kadant in a research note issued on Thursday, July 31st. Barrington Research analyst G. Prestopino now anticipates that the industrial products company will post earnings per share of $8.97 for the year, down from their previous estimate of $9.05. Barrington Research has a "Outperform" rating and a $380.00 price target on the stock. The consensus estimate for Kadant's current full-year earnings is $9.97 per share. Barrington Research also issued estimates for Kadant's Q1 2026 earnings at $2.28 EPS and Q4 2026 earnings at $2.79 EPS.

Several other brokerages also recently weighed in on KAI. Wall Street Zen upgraded shares of Kadant from a "sell" rating to a "hold" rating in a research note on Saturday, July 5th. DA Davidson upped their price objective on Kadant from $275.00 to $300.00 and gave the stock a "neutral" rating in a report on Monday.

Kadant Stock Up 0.5%

Shares of KAI traded up $1.47 during mid-day trading on Monday, reaching $324.89. The company's stock had a trading volume of 87,360 shares, compared to its average volume of 116,645. The company's 50 day moving average is $324.57 and its 200 day moving average is $335.21. The stock has a market cap of $3.83 billion, a PE ratio of 36.18 and a beta of 1.24. Kadant has a 12-month low of $281.30 and a 12-month high of $429.95. The company has a debt-to-equity ratio of 0.27, a current ratio of 8.17 and a quick ratio of 4.97.

Kadant (NYSE:KAI - Get Free Report) last announced its earnings results on Tuesday, July 29th. The industrial products company reported $2.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.94 by $0.37. The business had revenue of $255.27 million for the quarter, compared to analyst estimates of $245.99 million. Kadant had a net margin of 10.34% and a return on equity of 12.62%. The company's revenue for the quarter was down 7.3% compared to the same quarter last year. During the same quarter last year, the business earned $2.81 earnings per share.

Kadant declared that its Board of Directors has authorized a stock buyback plan on Thursday, May 15th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the industrial products company to purchase up to 1.3% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Kadant Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 7th. Investors of record on Thursday, July 10th will be paid a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, July 10th. Kadant's payout ratio is presently 15.14%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of KAI. Wealth Enhancement Advisory Services LLC grew its position in Kadant by 7.3% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 836 shares of the industrial products company's stock worth $282,000 after acquiring an additional 57 shares during the last quarter. Amalgamated Bank grew its position in Kadant by 736.5% during the 1st quarter. Amalgamated Bank now owns 3,346 shares of the industrial products company's stock worth $1,127,000 after acquiring an additional 2,946 shares during the last quarter. GAMMA Investing LLC grew its position in Kadant by 348.1% during the 1st quarter. GAMMA Investing LLC now owns 242 shares of the industrial products company's stock worth $82,000 after acquiring an additional 188 shares during the last quarter. Asset Management One Co. Ltd. bought a new stake in Kadant during the 1st quarter worth approximately $111,000. Finally, Yousif Capital Management LLC bought a new stake in Kadant during the 1st quarter worth approximately $1,475,000. Institutional investors own 96.13% of the company's stock.

Kadant Company Profile

Kadant Inc supplies technologies and engineered systems worldwide. It operates in three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables consisting of doctor systems and holders, doctor blades, cleaning shower and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems.