Analysts at William Blair have revised their earnings estimates for Kadant Inc. (NYSE:KAI), reflecting a less optimistic outlook for the industrial products company. In a research note issued on October 29, 2023, analyst R. Sparenblek lowered the projected earnings per share (EPS) for the fourth quarter of 2025 to $2.10, a significant decrease from the previous estimate of $2.59. The consensus estimate for Kadant’s full-year earnings now stands at $9.97 per share.
In addition to the revised figure for Q4 2025, William Blair provided forecasts for subsequent quarters in 2026, predicting earnings of $2.84 per share for Q2, $3.19 for Q3, and $2.63 for Q4. This shift in outlook comes shortly after Kadant reported its quarterly earnings on October 28, 2023.
Recent Earnings Report Highlights
Kadant’s latest earnings report revealed an EPS of $2.59, surpassing analysts’ expectations of $2.18 by $0.41. The company achieved a revenue of $271.57 million for the quarter, exceeding forecasts of $260.17 million. Year-on-year, Kadant’s revenue remained stable, with a net margin of 9.96% and a return on equity of 11.97%.
The company has set guidance for Q4 2025 at $2.05 to $2.25 EPS and for the full fiscal year at $9.05 to $9.25 EPS.
Analyst Ratings and Market Response
Recent reports from other research firms have varied in their assessments. Weiss Ratings maintained a “hold (c+)” rating as of October 8, while DA Davidson raised their target price from $275.00 to $300.00, issuing a “neutral” rating on August 4. In contrast, Barrington Research reiterated an “outperform” rating with a target price of $380.00 as of October 27. Currently, there is one buy rating and two hold ratings for Kadant, resulting in a consensus rating of “Hold” with an average price target of $340.00, according to data from MarketBeat.com.
Following the adjustments in earnings forecasts, shares of Kadant traded down by 3.5%, opening at $275.58. The company holds a market capitalization of $3.25 billion, a PE ratio of 31.86, and a beta of 1.22. Its shares have ranged from a one-year low of $270.73 to a high of $429.95.
Institutional investors have shown significant interest in Kadant, with hedge funds acquiring shares throughout the year. For instance, Kestra Investment Management LLC invested approximately $27,000 in the second quarter, while Maseco LLP and BNP PARIBAS ASSET MANAGEMENT Holding S.A. also entered new positions worth approximately $30,000 and $31,000, respectively. Institutional ownership stands at an impressive 96.13% of the company’s stock.
In insider trading news, Director Thomas C. Leonard sold 415 shares on August 27, 2023, at an average price of $338.41. This transaction totaled approximately $140,440.15 and resulted in an 8.90% reduction in his stock position.
Dividend Announcement
Kadant has also announced a quarterly dividend of $0.34, payable on November 6, 2023, to shareholders of record as of October 9, 2023. This dividend represents an annualized total of $1.36 and a yield of 0.5%. The company’s dividend payout ratio (DPR) stands at 15.72%.
Kadant Inc. continues to provide advanced technologies and engineered systems globally, operating across three segments: Flow Control, Industrial Processing, and Material Handling. The recent earnings adjustments and market responses highlight the ongoing scrutiny Kadant faces as it navigates fluctuating market conditions.
