Industrial equipment manufacturer Kadant (NYSE: KAI) will be announcing earnings results this Tuesday afternoon. Here’s what investors should know.

Kadant met analysts’ revenue expectations last quarter, reporting revenues of $239.2 million, down 3.9% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly.

Is Kadant a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Kadant’s revenue to decline 10.5% year on year to $246 million, a reversal from the 12.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.94 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kadant has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.9% on average.

Looking at Kadant’s peers in the general industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 21.2%, beating analysts’ expectations by 15.6%, and Honeywell reported revenues up 8.1%, topping estimates by 2.8%. GE Aerospace traded down 1.1% following the results while Honeywell was also down 6.4%.

Read our full analysis of GE Aerospace’s results here and Honeywell’s results here.

There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 6.8% on average over the last month. Kadant is up 8.8% during the same time and is heading into earnings with an average analyst price target of $335 (compared to the current share price of $345.38).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.