Kadant (NYSE:KAI) Releases FY 2025 Earnings Guidance

Key Points

• Kadant has provided FY 2025 earnings guidance with EPS expectations of $9.050-$9.250, slightly below the consensus estimate of $9.325.
• The company also declared a quarterly dividend of $0.34 per share, with an annualized yield of 0.39%.
• Kadant has initiated a stock buyback plan, authorizing $50 million in shares, indicating management's belief that its stock is undervalued.

Kadant (NYSE:KAI - Get Free Report) issued an update on its FY 2025 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 9.050-9.250 for the period, compared to the consensus estimate of 9.325. The company issued revenue guidance of $1.0 billion-$1.0 billion, compared to the consensus revenue estimate of $1.0 billion. Kadant also updated its Q3 2025 guidance to 2.130-2.230 EPS.

Wall Street Analyst Weigh In

A number of research firms have weighed in on KAI. Wall Street Zen raised Kadant from a "sell" rating to a "hold" rating in a research note on Saturday, July 5th. DA Davidson lowered their price objective on Kadant from $300.00 to $275.00 and set a "neutral" rating on the stock in a research note on Thursday, May 1st. Finally, Barrington Research reissued an "outperform" rating and set a $380.00 price objective on shares of Kadant in a research note on Tuesday.

Kadant Trading Up 0.1%

Shares of KAI stock traded up $0.51 during mid-day trading on Tuesday, hitting $344.53. 133,654 shares of the company's stock were exchanged, compared to its average volume of 147,448. Kadant has a fifty-two week low of $281.30 and a fifty-two week high of $429.95. The stock has a 50-day simple moving average of $321.84 and a two-hundred day simple moving average of $336.03. The company has a quick ratio of 1.62, a current ratio of 2.47 and a debt-to-equity ratio of 0.31. The stock has a market cap of $4.06 billion, a price-to-earnings ratio of 36.57 and a beta of 1.25.

Kadant (NYSE:KAI - Get Free Report) last issued its earnings results on Tuesday, July 29th. The industrial products company reported $2.31 earnings per share for the quarter, topping the consensus estimate of $1.94 by $0.37. Kadant had a return on equity of 13.74% and a net margin of 10.63%. Equities analysts expect that Kadant will post 9.97 EPS for the current fiscal year.

Kadant Announces Dividend

The company also recently declared 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. The ex-dividend date of this dividend is Thursday, July 10th. This represents a $1.36 dividend on an annualized basis and a yield of 0.39%. Kadant's dividend payout ratio (DPR) is 14.44%.

Kadant declared that its board has approved a stock buyback plan on Thursday, May 15th that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the industrial products company to purchase up to 1.3% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On Kadant

Institutional investors have recently added to or reduced their stakes in the company. United Services Automobile Association bought a new position in shares of Kadant in the first quarter valued at $255,000. Integrated Wealth Concepts LLC increased its holdings in shares of Kadant by 8.6% in the first quarter. Integrated Wealth Concepts LLC now owns 907 shares of the industrial products company's stock valued at $306,000 after buying an additional 72 shares in the last quarter. AQR Capital Management LLC increased its holdings in shares of Kadant by 11.2% in the first quarter. AQR Capital Management LLC now owns 2,763 shares of the industrial products company's stock valued at $931,000 after buying an additional 279 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Kadant by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,985 shares of the industrial products company's stock valued at $2,353,000 after buying an additional 311 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Kadant by 1.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 30,974 shares of the industrial products company's stock valued at $10,435,000 after buying an additional 441 shares in the last quarter. 96.13% of the stock is currently owned by institutional investors and hedge funds.

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.

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