Kadant Inc. (KAI) shares plummeted 5.60% in pre-market trading on Wednesday following the release of its fiscal first-quarter results and revised full-year guidance. The company, which specializes in engineered systems for process industries, reported a decline in both earnings and revenue for the quarter ended March 29.
According to the earnings report, Kadant's Q1 adjusted earnings came in at $2.10 per diluted share, down from $2.38 per share in the same period last year. While this figure beat analysts' expectations of $1.97 per share, the company's revenue fell short. Kadant reported revenue of $239.2 million for the quarter, a decrease from $249 million a year earlier and below the $244.6 million anticipated by analysts.
Perhaps more concerning for investors is Kadant's revised outlook for fiscal 2025. The company now expects adjusted earnings per share of $9.05 to $9.25 on revenue of $1.02 billion to $1.04 billion. This represents a significant reduction from its previous guidance of $9.70 to $10.05 EPS and revenue of $1.04 billion to $1.07 billion. The lowered forecast, coupled with weaker-than-expected Q2 guidance, appears to be the primary driver behind the stock's sharp pre-market decline.
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