Back to top

Analyst Blog

Kaydon Corp reported second-quarter 2013 adjusted earnings of 42 cents, which beat the Zacks Estimate of 39 cents by 7.7%. Quarterly earnings were flat year over year.


Revenues for the reported quarter were $117.3 million, down 5.7% compared with $124.4 million in the second quarter of 2012. The decline in net sales was primarily attributable to $14.3 million decline in wind sales and military sales, partially offset by growth in industrial sales.  

However, new orders booked during the quarter increased 9.2% year over year to $12.32 million, which is equivalent to a book-to-bill ratio of 1.05%. Orders were up 3.2% sequentially. As of Jun 29, 2013, backlog was $158.1 million, compared with $169.5 million in the year–ago period.


Adjusted EBITDA during the quarter was $25.6 million compared with $27.3 million during the prior-year quarter. Gross margin increased during the quarter to 38.6% from 33.7% in the year-earlier quarter, but it remained flat sequentially. The increased operating leverage derived from restructuring activities that were undertaken in the previous year and favorable product mix boosted the performance.

Cash Flow and Balance Sheet

Free cash flow during the first quarter of 2013 was $18.7 million compared with $13.3 million during the second quarter of 2012. The increase in free cash flow was due to improved performance by the company during the quarter. As a result of the debt repayment initiatives, cash and cash equivalents were $69.9 million with long-term debt of $156.2 million.

Capital expenditures during the quarter amounted to $3 million compared with $4.8 million in the prior-year quarter. The company repaid $7.9 million of debt during the reported quarter. In addition, dividends totaling to $6.4 million were also paid by the company to its shareholders.

Kaydon currently has Zacks Rank #3 (Hold). Other sector participants that are worth mentioning include NSK Ltd. (NPSKY), having a Zacks Rank #1 (Strong Buy), while Norsk Hydro ASA (NHYDY) and Precision Castparts Corp. (PCP - Analyst Report) have Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 115.10 +6.54%
US SILICA H… SLCA 70.26 +3.32%
CHYRONHEGO… CHYR 2.63 +2.33%
MALLINCKROD… MNK 79.99 +2.17%
TRIQUINT SE… TQNT 19.39 +2.11%