Analysts at William Blair have revised their earnings forecast for Kadant Inc (NYSE:KAI) downward, anticipating a significant decline in the company’s earnings per share (EPS) for the fourth quarter of 2025. In a research note issued on October 29, 2023, analyst R. Sparenblek projected that Kadant will earn $2.10 per share, a decrease from the previous estimate of $2.59.
The consensus estimate for Kadant’s full-year earnings currently stands at $9.97 per share. In addition to the Q4 2025 outlook, William Blair has provided estimates for the subsequent quarters of 2026, predicting earnings of $2.84 for Q2, $3.19 for Q3, and $2.63 for Q4.
On October 28, 2023, Kadant reported its latest quarterly earnings, posting an EPS of $2.59, which surpassed analysts’ expectations of $2.18 by $0.41. The company achieved a return on equity of 11.97% and a net margin of 9.96%, with revenue reaching $271.57 million, exceeding forecasts of $260.17 million. This represents a slight increase compared to the $2.84 EPS reported in the same quarter the previous year.
Kadant’s guidance for Q4 2025 is now set between $2.050 and $2.250 EPS, while the full-year guidance for FY 2025 is projected between $9.050 and $9.250 EPS.
Analyst Ratings and Market Performance
Recent reports from other equity research firms provide a mixed view of Kadant. Weiss Ratings reaffirmed a “hold (c+)” rating on October 8, 2023, while DA Davidson raised their target price from $275.00 to $300.00 and maintained a “neutral” rating in an analysis released on August 4, 2023. Barrington Research issued an “outperform” rating with a target price of $380.00 on October 27, 2023. Currently, one analyst rates the stock as a Buy, while two have issued Hold ratings, leading to a consensus rating of “Hold” and an average price target of $340.00 based on data from MarketBeat.com.
Following the earnings report, Kadant’s stock opened at $275.58 on October 30, 2023, reflecting a decrease of 3.5%. The company has a market capitalization of $3.25 billion, a price-to-earnings (P/E) ratio of 31.86, and a beta of 1.22. Over the past year, the stock has fluctuated between a low of $270.73 and a high of $429.95. Its 50-day moving average sits at $306.02, while the 200-day moving average is at $315.68. The firm has a debt-to-equity ratio of 0.27, a current ratio of 9.39, and a quick ratio of 1.53.
Investor Activity and Dividend Announcement
Recent trading activity indicates that institutional investors and hedge funds have been active in buying and selling Kadant shares. Among them, Kestra Investment Management LLC acquired a new stake valued at approximately $27,000 in the second quarter. Similarly, Maseco LLP and BNP PARIBAS ASSET MANAGEMENT Holding S.A. also entered new positions worth around $30,000 and $31,000, respectively. Notably, institutional investors hold 96.13% of Kadant’s shares.
In other developments, Director Thomas C. Leonard sold 415 shares on August 27, 2023, at an average price of $338.41, totaling approximately $140,440.15. After the sale, Leonard retained 4,250 shares valued at roughly $1,438,242.50, marking an 8.90% decrease in his position. This transaction was disclosed in a filing with the Securities and Exchange Commission (SEC).
Additionally, Kadant recently announced a quarterly dividend of $0.34, scheduled for payment on November 6, 2023. Shareholders of record on October 9, 2023, will receive this dividend, which corresponds to an annual yield of 0.5% and a dividend payout ratio of 15.72%.
Kadant Inc, based in the United States, specializes in supplying technologies and engineered systems worldwide. The company operates across three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment focuses on developing and marketing fluid-handling systems and equipment, including rotary joints and related consumables.