DA Davidson Issues Optimistic Forecast for Kadant Earnings

Key Points

• DA Davidson has raised its FY2025 earnings per share estimate for Kadant to $9.18, up from a previous estimate of $9.07, with a price target of $300.00 and a "Neutral" rating.
• Kadant recently reported quarterly earnings of $2.31 per share, exceeding consensus estimates and marking a revenue of $255.27 million for the quarter, although down 7.3% year-over-year.
• The company declared a quarterly dividend of $0.34, scheduled for payment on August 7th, indicating a 0.4% yield with a dividend payout ratio of 15.14%.

Kadant Inc (NYSE:KAI - Free Report) - Equities researchers at DA Davidson upped their FY2025 earnings estimates for shares of Kadant in a research note issued to investors on Tuesday, August 5th. DA Davidson analyst K. Yinger now anticipates that the industrial products company will post earnings of $9.18 per share for the year, up from their previous estimate of $9.07. DA Davidson currently has a "Neutral" rating and a $300.00 price objective on the stock. The consensus estimate for Kadant's current full-year earnings is $9.97 per share. DA Davidson also issued estimates for Kadant's FY2026 earnings at $10.13 EPS.

A number of other analysts have also issued reports on the company. Wall Street Zen raised Kadant from a "sell" rating to a "hold" rating in a report on Saturday, July 5th. Barrington Research reaffirmed an "outperform" rating and set a $380.00 price objective on shares of Kadant in a research report on Tuesday, July 29th.

Kadant Stock Down 0.2%

Shares of KAI traded down $0.57 during midday trading on Thursday, reaching $325.72. 50,037 shares of the stock were exchanged, compared to its average volume of 145,126. Kadant has a 12-month low of $281.30 and a 12-month high of $429.95. The firm has a 50 day simple moving average of $325.16 and a 200-day simple moving average of $333.85. The company has a quick ratio of 1.53, a current ratio of 2.38 and a debt-to-equity ratio of 0.26. The company has a market cap of $3.84 billion, a price-to-earnings ratio of 36.27 and a beta of 1.24.

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. The firm had revenue of $255.27 million for the quarter, compared to analyst estimates of $245.99 million. Kadant had a return on equity of 12.62% and a net margin of 10.34%. The firm's revenue for the quarter was down 7.3% on a year-over-year basis. During the same period last year, the company earned $2.81 earnings per share.

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

Kadant Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 7th. Stockholders of record on Thursday, July 10th were paid a $0.34 dividend. The ex-dividend date was Thursday, July 10th. This represents a $1.36 annualized dividend and a dividend yield of 0.4%. Kadant's dividend payout ratio (DPR) is currently 15.14%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Semanteon Capital Management LP purchased a new stake in shares of Kadant in the second quarter worth $1,427,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its stake in shares of Kadant by 7.5% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 3,023 shares of the industrial products company's stock valued at $960,000 after buying an additional 212 shares during the last quarter. Police & Firemen s Retirement System of New Jersey grew its stake in shares of Kadant by 7.6% during the second quarter. Police & Firemen s Retirement System of New Jersey now owns 2,690 shares of the industrial products company's stock valued at $854,000 after buying an additional 189 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Kadant by 1.5% during the second quarter. Geode Capital Management LLC now owns 279,013 shares of the industrial products company's stock valued at $88,583,000 after buying an additional 4,162 shares during the last quarter. Finally, PNC Financial Services Group Inc. grew its stake in shares of Kadant by 17.8% during the second quarter. PNC Financial Services Group Inc. now owns 1,198 shares of the industrial products company's stock valued at $380,000 after buying an additional 181 shares during the last quarter. Institutional investors and hedge funds 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.