We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shares of Kadant Inc. (KAI - Free Report) have jumped an impressive 23% in the past three months. Its solid fundamentals, along with sound financial performance and earnings prospects, support the price momentum. It presently sports a Zacks Rank #1 (Strong Buy).
The company engages in manufacturing and supplying engineered systems and components for use in process industries across the globe. It belongs to the Zacks Manufacturing - General Industrial industry, which is in the top 29% (with a rank of 73) of more than 250 Zacks industries. It is based in Westford, MA, and has a market capitalization of $2.4 billion.
In the past three months, the industry has declined 0.3%. The S&P 500 has gained 7.7% during the same period and the Zacks Industrial Products sector has advanced 1.6%.
Image Source: Zacks Investment Research
Factors Influencing the Stock
In the past three months, Kadant delivered impressive second-quarter 2021 results. Its earnings surpassed the Zacks Consensus Estimate by 33.11% and expanded 90% from the year-ago quarter. Sales surprise in the quarter was 9.96%. Bookings were solid and backlog was $242 million exiting the quarter.
Other than sound financial performance, Kadant’s solid product offerings, impressive order activities and backlog, and strengthening demand in markets are some other tailwinds for the quarters ahead. Also, the company’s solid operational execution and synergistic gains from buyouts (explained below) are beneficial.
For 2021, Kadant anticipates revenues to be $783-$793 million, higher than the prior expectation of $710-$730 million. Also, the company’s sound shareholder-friendly policies raise its appeal. Recently, the company paid a quarterly dividend of 32 cents per share to its shareholders, while any shares repurchased in the past three months might have added to shareholders’ value. The company announced a $20 million worth of shares buyback program in May.
Regarding the company’s inorganic actions, Kadant acquired Balemaster — the U.S.-based manufacturer of balers and other automated waste-handling equipment — for $54 million in cash. Balemaster will be integrated with Kadant’s Material Handling segment. Also, the company acquired Joh. Clouth GmbH & Co. KG along with its affiliates through its subsidiary, Kadant Germany Holding GmbH. This buyout was done in third-quarter 2021. Joh. Clouth will be part of Kadant’s Flow Control segment.
The Zacks Consensus Estimate for the company’s earnings per share is pegged at $7.41 for 2021 and $8.81 for 2022, marking increases of 22.1% and 32.1% from the respective 90-day-ago figures. The consensus estimate for third-quarter earnings improved from $1.51 per share to $1.64. Such upward revisions in earnings estimates are reflective of healthy operating conditions for the company.
Kadant’s performance in the past three months has been better than Dover Corporation (DOV - Free Report) , Manitex International, Inc. (MNTX - Free Report) and Applied Industrial Technologies, Inc. (AIT - Free Report) . The companies belong to the same industry as Kadant. In the past three months, Dover’s shares have gained 16% and Manitex expanded 4.7%, while Applied Industrial declined 6.6%.
Image: Bigstock
Kadant (KAI) Stock Rises 23% in 3 Months: What's Driving It?
Shares of Kadant Inc. (KAI - Free Report) have jumped an impressive 23% in the past three months. Its solid fundamentals, along with sound financial performance and earnings prospects, support the price momentum. It presently sports a Zacks Rank #1 (Strong Buy).
The company engages in manufacturing and supplying engineered systems and components for use in process industries across the globe. It belongs to the Zacks Manufacturing - General Industrial industry, which is in the top 29% (with a rank of 73) of more than 250 Zacks industries. It is based in Westford, MA, and has a market capitalization of $2.4 billion.
In the past three months, the industry has declined 0.3%. The S&P 500 has gained 7.7% during the same period and the Zacks Industrial Products sector has advanced 1.6%.
Image Source: Zacks Investment Research
Factors Influencing the Stock
In the past three months, Kadant delivered impressive second-quarter 2021 results. Its earnings surpassed the Zacks Consensus Estimate by 33.11% and expanded 90% from the year-ago quarter. Sales surprise in the quarter was 9.96%. Bookings were solid and backlog was $242 million exiting the quarter.
Other than sound financial performance, Kadant’s solid product offerings, impressive order activities and backlog, and strengthening demand in markets are some other tailwinds for the quarters ahead. Also, the company’s solid operational execution and synergistic gains from buyouts (explained below) are beneficial.
For 2021, Kadant anticipates revenues to be $783-$793 million, higher than the prior expectation of $710-$730 million. Also, the company’s sound shareholder-friendly policies raise its appeal. Recently, the company paid a quarterly dividend of 32 cents per share to its shareholders, while any shares repurchased in the past three months might have added to shareholders’ value. The company announced a $20 million worth of shares buyback program in May.
Regarding the company’s inorganic actions, Kadant acquired Balemaster — the U.S.-based manufacturer of balers and other automated waste-handling equipment — for $54 million in cash. Balemaster will be integrated with Kadant’s Material Handling segment. Also, the company acquired Joh. Clouth GmbH & Co. KG along with its affiliates through its subsidiary, Kadant Germany Holding GmbH. This buyout was done in third-quarter 2021. Joh. Clouth will be part of Kadant’s Flow Control segment.
The Zacks Consensus Estimate for the company’s earnings per share is pegged at $7.41 for 2021 and $8.81 for 2022, marking increases of 22.1% and 32.1% from the respective 90-day-ago figures. The consensus estimate for third-quarter earnings improved from $1.51 per share to $1.64. Such upward revisions in earnings estimates are reflective of healthy operating conditions for the company.
Kadant Inc Price and Consensus
Kadant Inc price-consensus-chart | Kadant Inc Quote
Kadant’s Performance Versus Industry Players
Kadant’s performance in the past three months has been better than Dover Corporation (DOV - Free Report) , Manitex International, Inc. (MNTX - Free Report) and Applied Industrial Technologies, Inc. (AIT - Free Report) . The companies belong to the same industry as Kadant. In the past three months, Dover’s shares have gained 16% and Manitex expanded 4.7%, while Applied Industrial declined 6.6%.
Manitex sports a Zacks Rank #1 while both Dover and Applied Industrial presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.