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William Blair Issues Pessimistic Outlook for Kadant Earnings

Kadant logo with Industrials background

Key Points

  • William Blair has lowered its EPS estimates for Kadant's Q3 2025 from $2.91 to $2.20, while also estimating $2.59 for Q4 2025.
  • Kadant recently reported $2.31 EPS for the last quarter, surpassing consensus estimates but showing a 7.3% year-over-year decline in revenue.
  • The company declared a quarterly dividend of $0.34 per share, with a payout ratio of 15.14%, signifying financial stability amid market fluctuations.
  • MarketBeat previews top five stocks to own in September.

Kadant Inc (NYSE:KAI - Free Report) - Equities research analysts at William Blair dropped their Q3 2025 EPS estimates for Kadant in a research report issued on Wednesday, July 30th. William Blair analyst R. Sparenblek now expects that the industrial products company will post earnings per share of $2.20 for the quarter, down from their previous forecast of $2.91. The consensus estimate for Kadant's current full-year earnings is $9.97 per share. William Blair also issued estimates for Kadant's Q4 2025 earnings at $2.59 EPS.

Kadant (NYSE:KAI - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The industrial products company reported $2.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.94 by $0.37. The company had revenue of $255.27 million during the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period last year, the firm earned $2.81 EPS.

Several other analysts have also weighed in on the company. Barrington Research reissued an "outperform" rating and issued a $380.00 target price on shares of Kadant in a report on Tuesday, July 29th. DA Davidson lowered their price objective on shares of Kadant from $300.00 to $275.00 and set a "neutral" rating on the stock in a research note on Thursday, May 1st. Finally, Wall Street Zen upgraded shares of Kadant from a "sell" rating to a "hold" rating in a research report on Saturday, July 5th.

View Our Latest Report on Kadant

Kadant Stock Performance

NYSE KAI opened at $323.47 on Monday. The business has a 50 day moving average price of $324.23 and a 200 day moving average price of $335.52. The company has a market capitalization of $3.81 billion, a P/E ratio of 36.02 and a beta of 1.24. Kadant has a 1-year low of $281.30 and a 1-year 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.

Hedge Funds Weigh In On Kadant

Institutional investors have recently made changes to their positions in the stock. Bessemer Group Inc. increased its position in Kadant by 56.9% during the 2nd quarter. Bessemer Group Inc. now owns 4,462 shares of the industrial products company's stock worth $1,416,000 after purchasing an additional 1,618 shares in the last quarter. MQS Management LLC acquired a new stake in shares of Kadant during the 2nd quarter worth about $233,000. Linden Thomas Advisory Services LLC grew its holdings in shares of Kadant by 20.2% during the second quarter. Linden Thomas Advisory Services LLC now owns 2,675 shares of the industrial products company's stock worth $849,000 after buying an additional 450 shares in the last quarter. State of New Jersey Common Pension Fund D raised its position in shares of Kadant by 19.0% in the second quarter. State of New Jersey Common Pension Fund D now owns 6,097 shares of the industrial products company's stock valued at $1,935,000 after buying an additional 973 shares during the last quarter. Finally, Ethic Inc. lifted its stake in shares of Kadant by 28.3% during the second quarter. Ethic Inc. now owns 976 shares of the industrial products company's stock valued at $306,000 after buying an additional 215 shares during the period. 96.13% of the stock is owned by institutional investors and hedge funds.

Kadant Dividend Announcement

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

Kadant announced that its board has approved a stock buyback program on Thursday, May 15th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the industrial products company to repurchase up to 1.3% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Kadant Company Profile

(Get Free Report)

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.

See Also

Earnings History and Estimates for Kadant (NYSE:KAI)

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.

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