Kaydon Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Kaydon (NYS: KDN) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Kaydon met expectations on revenue and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew.


Margins dropped across the board.

Revenue details
Kaydon notched revenue of $116.5 million. The six analysts polled by S&P Capital IQ anticipated sales of $117.1 million on the same basis. GAAP reported sales were 7.5% higher than the prior-year quarter's $108.3 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.44. The seven earnings estimates compiled by S&P Capital IQ averaged $0.43 per share. GAAP EPS of $0.38 for Q1 were 5.6% higher than the prior-year quarter's $0.36 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.7%, 110 basis points worse than the prior-year quarter. Operating margin was 14.9%, 220 basis points worse than the prior-year quarter. Net margin was 10.4%, 70 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $131.1 million. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $496.0 million. The average EPS estimate is $1.81.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 329 members out of 337 rating the stock outperform, and eight members rating it underperform. Among 93 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give Kaydon a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kaydon is outperform, with an average price target of $31.25.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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