Kadant (KAI) Tops Q3 EPS by 15c, Revenues Beat; Lowers FY18 EPS/Revenue Outlook Below Consensus

Kadant (NYSE: KAI) reported Q3 EPS of $1.53, $0.15 better than the analyst estimate of $1.38. Revenue for the quarter came in at $166 million versus the consensus estimate of $164.84 million.

• Revenue increased 8% to a record $166 million
• GAAP diluted EPS increased 40% to a record $1.64
• Adjusted diluted EPS increased 3% to a record $1.53
• Net income increased 41% to $19 million
• Adjusted EBITDA increased 11% to a record $34 million and represented 20% of revenue
• Gross margin was 44.1%
• Bookings increased 22% to $165 million
• Backlog was $192 million
• Cash flow from operations was $17 million

Management Commentary

“The record-setting pace we set in the first half of 2018 continued into the third quarter,” said Jonathan Painter, president and chief executive officer. “Strong internal growth and excellent execution led to record revenue and diluted EPS. Capacity build-outs at mills in Asia and strong demand in North America, particularly for our Fluid-Handling and Stock-Preparation product lines, led this growth. Our bookings increased 22 percent due almost entirely to internal growth, contributing to our near-record backlog of $192 million at the end of the third quarter. Our operating units executed extremely well this quarter resulting in record adjusted EBITDA, representing 20 percent of revenue.”

GUIDANCE:

Kadant sees FY2018 EPS of $5.00-$5.05, versus the consensus of $5.05. Kadant sees FY2018 revenue of $628-632 million, versus the consensus of $636.25 million.

For earnings history and earnings-related data on Kadant (KAI) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Rein Therapeutics Inc. (RNTX) Tops Q2 EPS by 39c
• Zeo Energy Corp (ZEO) Misses Q2 EPS by 7c