KAI Earnings Prediction
The chart below shows how KAI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KAI sees a +0.39% change in stock price 10 days leading up to the earnings, and a +5.14% change 10 days following the report. On the earnings day itself, the stock moves by -0.27%. This data can give you a slight idea of what to expect for the next quarter's release.
KAI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
271.61M
11.23%
-1.15%
Gross Margin
44.71%
3.26%
0.79%
Operating Margin
18.14%
-0.38%
1.00%
Net Margin
11.74%
-7.63%
2.18%
EPS
2.68
1.90%
0.75%
No Data Available
KAI Earnings Analysis
Kadant Inc. Corporation (KAI.N) Earnings Conference Call
Positive
Record Revenue Achievement: 1. Record Revenue Growth: Kadant achieved a record revenue of $272 million in Q3 2024, marking an 11% increase compared to Q3 2023, driven by strong aftermarket parts sales and acquisitions.
Record Adjusted EBITDA Growth: 2. Outstanding Adjusted EBITDA: The company reported a record adjusted EBITDA of $63 million for Q3 2024, a 20% increase from the previous year, resulting in an adjusted EBITDA margin of 23.3%.
Bookings Surge: 3. Significant Bookings Increase: Bookings rose by 15% year-over-year, reaching $89 million, largely due to strong demand for aftermarket parts and contributions from acquisitions.
Cash Flow Strength: 4. Strong Cash Flow Performance: Operating cash flow was robust at $52 million, a 12% increase from Q3 2023, while free cash flow surged by 27% to $48 million, demonstrating the strength of Kadant's business model.
Record Adjusted EPS Growth: 5. Record Adjusted EPS: Kadant's adjusted EPS reached a record $2.84 in Q3 2024, up 6% from $2.69 in Q3 2023, exceeding the high end of the guidance range by $0.36 due to higher-than-expected revenue and gross margins.
Negative
Rising SG&A Expenses: 1. Increased SG&A Expenses: SG&A expenses rose to $69 million in Q3 2024, up $11.1 million from $57.9 million in Q3 2023, leading to an increase in SG&A as a percentage of revenue to 25.4% from 23.7%.
Declining EBITDA Margin: 2. Declining Adjusted EBITDA Margin in Material Handling: The adjusted EBITDA margin for the Material Handling segment decreased by 210 basis points compared to Q3 2023, primarily due to product mix and lower revenue volume in some businesses within the segment.
Declining Gross Margins: 3. Lower Expected Gross Margins: For Q4 2024, gross margins are anticipated to be in the low to mid 43% range, primarily due to the mix of projects, indicating a decline from the current levels.
Currency Translation Challenges: 4. Negative Impact from Foreign Currency Translation: The guidance for 2024 includes a $0.17 negative effect from foreign currency translation, reflecting challenges in currency fluctuations that could impact overall financial performance.
Rising Financial Costs: 5. Increased Net Interest Expense: The company expects net interest expense to be approximately $18.5 million for 2024, indicating a rise in financial costs that could affect profitability.
KAI FAQs
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KAI Earning Call Sentiment
Kadant, Inc. (KAI) Q3 2024 Earnings Call Transcript
KAI.N
-1.05%Positive
The earnings call indicates strong financial performance with record revenue and EBITDA growth, improved margins, and reduced net debt. The company raised guidance for revenue and EPS, signaling optimism. However, SG&A expenses rose due to acquisition costs, and management's vague responses in the Q&A raise some uncertainty. Despite these concerns, the positive financial metrics and raised guidance outweigh the negatives, leading to a positive sentiment. Given the market cap of $3.44 billion, the stock is likely to see a positive movement of 2% to 8% over the next two weeks.
