Kaydon Surpasses Earnings Estimate - Analyst Blog
May 13 2013 - 9:02AM
Zacks
Recently Kaydon Corp. (KDN) reported first
quarter 2013 adjusted earnings of 37 cents exceeding the Zacks
Estimate of 35 cents or with a positive earnings surprise of 5.71%.
However, adjusted earnings decreased by 15.9% year over year.
Reported earnings per share decreased by 13.16% to 33 cents from
38 cents in the year-earlier quarter.
Revenue
Revenue for the reported quarter was $110.7 million, compared to
$116.5 million in the first quarter of 2012. The decline in net
sales was primarily driven by an anticipated decrease in wind sales
totaling $14.6 million.
However, new orders booked during the quarter were up 8.7% year
over year to $119.4 million, which is equivalent to a book-to-bill
ratio of 108%. Orders were up 16.4% sequentially. Order entry
declined in the prior quarter (4Q12) as customers reacted to
adverse macroeconomic conditions. As of March 30, 2013, backlog was
$152.2 million, compared to $174.9 million in the year–ago
period.
Margins
Adjusted EBITDA during the quarter was $23.1 million compared to
$26.8 million during the prior-year quarter. Gross margin increased
during the quarter to 38.6% from 36.4% in the year-earlier quarter
and 36.8% sequentially. The increased operating leverage derived
from restructuring activities undertaken in the previous year and
favorable product mix boosted the performance.
Balance Sheet and Cash Flow
Free cash flow during the first quarter of 2013 was $24.3
million compared to $4.4 million during the first quarter of 2012.
The increase in free cash flow was due to improved performance by
the company during the quarter. As a result of the debt repayment
initiatives, cash and cash equivalents were $65.6 million with
long-term debt of $164.1 million.
The company repaid $3.9 million of debt during the reported
quarter. In addition, dividends totaling to $6.4 million were also
paid by the company to its share holders.
Outlook
In the quarters to follow, management expects the company’s
margins to improve as a result of more stable economic environments
and more focused approach.
Kaydon currently has Zacks Rank #4 (Sell). Other sector
participants that are worth mentioning include NSK
Ltd. (NPSKY), having a Zacks Rank #1 (Strong Buy),
while Norsk Hydro ASA (NHYDY) and
Northwest Pipe Co. (NWPX) has Zacks Rank #2 (Buy)
each.
KAYDON CORP (KDN): Free Stock Analysis Report
NORSK HYDRO ADR (NHYDY): Get Free Report
NSK LTD -UN ADR (NPSKY): Get Free Report
NORTHWEST PIPE (NWPX): Free Stock Analysis Report
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