logo
Plus   Neg
Share
Email

Stock Alert: Kadant Sinks 14%

Kadant Inc. (KAI) plunged $16.63 or 14.79% on Thursday before closing at $95.82. The stock has been trading in a range of $77.67-$114.05 in the past one year.

The company supplies equipment and critical components used in papermaking, paper recycling, recycling, and waste management, and other process industries.

Kadant reported fourth-quarter results yesterday. While the quarterly earnings and revenue beat estimates, the outlook for the first quarter of 2020 looks uncertain.

For the first quarter of 2020, the company expects EPS in the range of $0.80 to $1.08 on revenue of $153 to $163 million. Analysts see earnings of $1.08 and revenue of $161.23 million for the quarter.

"The wide guidance range for the quarter is due to the uncertainty surrounding the impact of the coronavirus in China and the government-mandated business closures, which have impacted employees of our subsidiaries in China. Our subsidiaries received permission to re-open with significant restrictions earlier this week; however, if these restrictions are extended or if there is a broader impact on our customers or suppliers, such impact could affect the timing of shipments and our financial results in the first quarter of 2020," said Jeffrey L. Powell, president and chief executive officer. "

Full-year EPS is expected to be between $5.00 and $5.10 on revenue of $690 to $700 million. Analysts have an Earnings estimate of $5.52 per share on revenue of $709.01 million.

Net income in the fourth quarter decreased to $8.7 million or $0.76 per share compared with $18.4 million or $1.61 per share in the same quarter a year ago. Adjusted EPS of $1.32 beat estimates of analysts polled by Thomson Reuters at $1.28 per share.

Revenue increased 11% year-on-year to $183 million.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Pizza Hut's large Original Pan Pizza is now available at locations across the U.S. for $10.99. The fast food chain, a subsidiary of Yum! Brands Inc., said that fans can now get a large Original Pan Pizza with up to three of their favorite toppings, without needing to stretch their wallets. The Original Pan Pizza is a buttery golden-brown color. The U.S. Food and Drug Administration approved the first drug to treat adults and children aged 12 years and older with hypereosinophilic syndrome for six months or longer without another identifiable non-blood related cause of the disease. GlaxoSmithKline's Nucala (mepolizumab) is the first FDA-approved drug in nearly 14 years to treat this group of rare and debilitating blood diseases. Uber has won a legal battle to continue to operate in London, one of its largest markets. The ride-hailing company has been granted an 18-month license to operate in London after overturning the ban on an appeal for the second time. The Westminister Magistrates Court found Uber London Ltd. a "fit and proper" company to run the services in London.
Follow RTT