Earnings To Watch: Kadant (KAI) Reports Q3 Results Tomorrow

Industrial equipment manufacturer Kadant (NYSE:KAI) will be reporting results tomorrow after market hours. Here’s what to look for.

Kadant beat analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $274.8 million, up 12.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.

Is Kadant a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Kadant’s revenue to grow 9.1% year on year to $266.4 million, in line with the 8.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.43 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kadant has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.2% on average.

Looking at Kadant’s peers in the general industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. John Bean delivered year-on-year revenue growth of 12.4%, beating analysts’ expectations by 2.6%, and 3M reported a revenue decline of 3.2%, in line with consensus estimates. John Bean traded up 17.8% following the results while 3M was down 5.2%.

Read our full analysis of John Bean’s results here and 3M’s results here.

Investors in the general industrial machinery segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Kadant is down 6.4% during the same time and is heading into earnings with an average analyst price target of $325 (compared to the current share price of $316.45).

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.