Kewaunee Scientific Corporation (KEQU) research, news, and more from GeoInvesting

Company description

Wed, 24 Jun 2009 04:00:00 GMT

Kewaunee Scientific Corporation is a recognized leader in the design, manufacture, and installation of scientific and technical furniture. The Company's corporate headquarters and domestic manufacturing facilities are located in Statesville, North Carolina. The Company has subsidiaries in Singapore and Bangalore, India which serve the Asian and Middle East markets. Kewaunee Scientific's website is located at.

Research

Mon, 15 Dec 2025 12:43:18 GMT

Yesterday, Kewaunee Scientific Corporation (NASDAQ:KEQU) ($38.6; $112.7M market cap) announced Q2 2026 results:

Q2 sales of $70.1 million vs. $47.8 million in the prior year quarter
Q2 diluted EPS of $0.82 vs. $1.01 in the prior year quarter
Order backlog was $192.9 million as of October 31, 2025, vs. $184.4 million a year ago and $214.6 million at April 30, 2025
Domestic segment sales were $55.2 million vs. $36.4 million in the prior year quarter
International segment sales were $14.9 million vs. $11.4 million in the prior year quarter
Management highlighted strong Nu Aire performance, offsetting legacy construction-related volatility, with backlog and quoting activity remaining robust

Management comments:

"As discussed in our prior earnings release, we expect volatility in project delivery timelines for the balance of the fiscal year and we saw that begin in quarter 2," said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer. "Our quoting and booking activity remain strong, which is reflected in our backlog that remains near record levels, specifically for our Domestic segment. Nu Aire had strong financial performance in the quarter, which helped to offset this volatility in the legacy business, which is more tied to the construction market. This dynamic illustrates our strategy, which we recently launched with the acquisition of Nu Aire, to diversify through well-targeted acquisitions. This strategy will also allow us to provide a broader set of laboratory solutions to the market."

"While we still expect volatility in project delivery timing for the balance of this fiscal year," Hull continued, "we remain confident in the demand for our products and the strength of the markets we serve. Our current quoting activity gives us confidence that our backlog will remain strong through the end of the fiscal year, setting the company up for continuing success in fiscal 2027. Kewaunee's early repayment of the Seller Notes strengthens our balance sheet, positions us for further inorganic growth, and underscores our commitment to long-term value creation."

Our Quick Take:

This wasn’t a great quarter from an EPS standpoint, but to be fair, last quarter management did say there would be some volatility quarter to quarter. Sales were actually up, which was nice to see, but what really stood out was margins being down, and that’s something we need to dig into and address with management.

All in all, the stock is trading at a low P/E, so a lot of the near term narrative is probably already baked in. It doesn’t feel like it should go much lower from here. Long term, we still like the company, but realistically this could be a tough two or three quarters where not much happens until either margins start to recover or they make an acquisition or visibility starts to improve.

At this point, we are not adding it to the portfolio just yet, but it’s definitely one to keep on the radar as a potential buy on a pullback a couple of quarters from now if things start improving.

Valuation:

Trailing P/E: 7.9x
Q2 Run-Rate P/E 11.8x

Kewaunee Scientific Corporation is a recognized leader in the design, manufacture, and installation of scientific and technical furniture

Research

Thu, 11 Sep 2025 14:20:45 GMT

Kewaunee Scientific Corporation (NASDAQ:KEQU) ($54.69; $161.2M market cap) announced Q1 2026 results:

Q1 sales of $71.1 million vs. $48.4 million in the prior year
Q1 2026 EPS: $1.04 vs. $0.74 in the prior year
Order backlog was $205.0 million as of July 31, 2025, vs. $159.4 million a year ago and $214.6 million at April 30, 2025

Management Commentary:

“Our Domestic and International segments delivered solid financial performance in the first quarter despite challenging market conditions as a result of uncertain government policy, evolving tariff structures and broader geopolitical upheaval,” said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer.

“While our overall backlog remains near historically high levels, we are experiencing volatility in project delivery timelines that we expect will cause uneven performance by quarter for the balance of fiscal year 2026, likely starting in the second quarter.”

“Kewaunee is focused on growth, both organically and inorganically, and is committed to making strategic investments in the people, processes, and technology that will support and enable this growth in a sustainable manner... Though this will place pressure on earnings growth in the near term, we believe it will position Kewaunee for rapid and sustained growth in the future.”

“Despite our anticipation of uneven quarterly performance for the remainder of fiscal year 2026, and increasing strategic investment in the Corporate platform, we expect to deliver better unadjusted EBITDA in fiscal year 2026 than we did in fiscal year 2025. We are confident in the strategies we are employing and the long-term health of the business.”

Kewaunee Scientific Corporation designs, manufactures, and installs laboratory and technical furniture products, including casework, fume hoods, workstations, and safety cabinets, serving scientific, healthcare, industrial, and educational markets.

Research

Thu, 26 Jun 2025 04:00:00 GMT

Kewaunee Scientific Corporation (NASDAQ:KEQU) ($40.48; 115.6M market cap) announced Q4 2025 results:

Q4 2025 sales of $77.1 million vs. $56.7 million in the prior year
Q4 2025 EPS: $1.95 (non-GAAP) vs. $1.55 (non-GAAP) in the prior year
Full-year 2025 sales of $240.5 million vs. $203.8 million in the prior year
Full-year 2025 EPS: $5.37 (non-GAAP) vs. $4.19 (non-GAAP) in the prior year
Backlog as of April 30, 2025 was $214.6 million, up from $155.6 million YoY
Acquisition of Nu Aire, Inc. closed November 1, 2024
Q4 2025 results included $1.3 million in costs related to the Nu Aire acquisition; full-year impact was $6.0 million
Adjusted Q4 pre-tax earnings rose 56.7% YoY to $8.4 million
Total cash on hand at FY-end: $17.2 million; long-term debt: $60.7 million
Debt-to-equity ratio at FY-end: 0.99-to-1 (or 0.57-to-1 excluding sale-leaseback liability)

Management Commentary:

"Kewaunee again delivered another strong quarter, closing out fiscal year 2025 on a high note. Our team continues to embrace the momentum we have generated in the market, delivering on our commitments to our customers, which continues to result in Kewaunee being the preferred supplier of choice for customers looking to furnish laboratory spaces," said Thomas D. Hull, III, Kewaunee's President and Chief Executive Officer.

"In November of this past year, Kewaunee took a significant step forward in our growth journey with the acquisition of Nu Aire, Inc., a pioneer in laboratory equipment and biosafety solutions. This move was guided by a clear strategic intent: To bring together two market leaders with complementary strengths, shared values, and a common vision for the future of laboratory innovation. Nu Aire's future is bright and we have never been more excited about the opportunity for Nu Aire to transform the same way Kewaunee has over the past five years."

"As we look forward, we are not standing still and we expect to continue to grow both organically and inorganically. Our culture will continue to be a powerful force, fueling our ability to adapt, grow, and deliver lasting value for our customers, communities, partners, and shareholders. For business owners who care deeply about their legacy, their team, and the future of their company, Kewaunee offers more than capital - we offer stewardship, continuity, and a partner they can trust for the next chapter."

Key Takeaways:

It was great to see the company come through with a great earnings report. We had been pounding the “FUD Buster” table that the pullback in the stock, due to fears over DOGE cuts, was misplaced. You can see our multiple discussions on this topic here and here.

Research

Mon, 07 Apr 2025 18:14:45 GMT

We continue to believe the pullback in KEQU shares is unwarranted.

In a follow up to our March 31, 2025 update where we discussed that NIH funding cuts should not negatively impact Kewaunee Scientific (NASDAQ:KEQU) ($35.67; $101.8M market cap) scientific laboratory equipment business, we now want to take a look at the company’s tariff risk exposure.

Our initial conclusion is that their domestic manufacturing facilities position them to potentially benefit from current tariff dynamics affecting the scientific and laboratory equipment sector.

The U.S. has imposed significant tariffs on imports from key trading partners:

China: A 20% tariff on imported lab components and instruments.
Mexico: A 25% tariff on lab equipment
Canada: A 25% tariff on lab imports

These tariffs have led to increased costs for U.S. laboratories that rely on foreign-made equipment and components. For instance, China has been a major supplier of laboratory instruments, accounting for approximately 24% of U.S. imports in certain categories.

Given this context, Kewaunee's U.S.-based manufacturing could offer a competitive advantage by providing tariff-free products to domestic customers. This advantage may be particularly relevant as U.S. laboratories seek to mitigate increased costs associated with imported equipment.

It's important to note that while Kewaunee manufactures domestically, they may still source certain components or materials from international suppliers. Therefore, the overall impact of tariffs on their cost structure would depend on their specific supply chain dynamics, which we are still looking into

Kewaunee Scientific Corporation is a recognized leader in the design, manufacture, and installation of scientific and technical furniture

Research

Thu, 13 Mar 2025 15:13:15 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($49.20; $141.2M market cap) announced Q3 2025 results:

Sales of $67.1 million vs $46.7 million in the prior year
Adjusted EPS of $1.09 vs $0.85 in the prior year
Backlog of $222 million vs $184.4 million at the end of Q2 2025
It appears that most of the revenue growth came from the Nuware acquisition.

"Kewaunee delivered another strong quarter, demonstrating once again our positive momentum in the marketplace and our continued operational performance improvement…

…In our Domestic segment, we achieved solid gains compared to the prior year. These gains were driven by sustained product demand in the U.S., where we leverage our market position as the industry's leader.

In India, where our backlog is at a record high, revenue has been slowed due to construction site delays. We are working closely with our customers to ensure seamless execution when project sites are ready. This will result in favorable revenue and earnings for us…

…Looking ahead, we are focused on delivering a strong finish to fiscal year 2025. Our teams remain committed to operational excellence, customer success, and driving sustainable growth. We continue to invest in our partnerships, ensuring our channel partners have the support they need to win in the marketplace. With strong fundamentals, a growing backlog, and a clear strategic vision, Kewaunee is well-positioned to capitalize on future opportunities and create lasting value for our shareholders."

The company also announced an amendment to its share repurchase program adding an additional 100,000 shares:

"Kewaunee's capital allocation strategy includes repurchasing stock under certain conditions and when the Company's management believes it will generate value," said Thomas D. Hull III, President and Chief Executive Officer of Kewaunee. "After repurchasing the maximum amount of shares allowable under the terms of our prior credit agreement with MidCap between October 2, 2023, and April 9, 2024, we paused repurchases to focus our capital allocation on the acquisition of Nu Aire, Inc., which closed on November 1, 2024. We are confident in the strategic direction of the Company and resumed repurchasing shares on February 28, 2025, and will continue to do so as capital availability and market conditions, in our estimation, remain favorable. This amendment to the original repurchase program will give us flexibility to execute this strategy as conditions allow."

IMPORTANT NOTE: KEQU resides in the Open Forum Focus Model Portfolio as well as the newly opened Buy on Pullback (BOP) Portfolio #13.

Kewaunee Scientific Corporation is a recognized leader in the design, manufacture, and installation of scientific and technical furniture.

Research

Fri, 07 Feb 2025 15:45:09 GMT

Open Forum Focus Stock of the Month - KEQU

In yesterday’s open forum, Maj promised that this morning we would share a note by MS Cliff Notes on Kewaunee Scientific (NASDAQ:KEQU) ($64.70; $185.8M market cap) since the company was selected as our newest Open Forum Focus Stock for the Month for February 2025.

As a one-stop shop (manufacturer, installation, and servicing), KEQU, through its new CEO (was CFO), has made positive strides in restoring the company’s margins by modernizing manufacturing facilities and tweaking the business model of its domestic operations in terms of sales strategy.

Now, the company is in a position to use its leading global market position to focus more on growing sales, remain profitable and accelerate growth through an acquisition strategy in a very fragmented industry characterized by smaller players. As a matter fact, management executed its first acquisition as part of this strategy, which should meaningfully contribute to sales and earnings right out of the gates.

With an annual EPS run-rate of over $5.00 cents (P/E run-rate of 13x), the stock is poised for a long-term multi-bagger move through an upward revision in the P/E multiple if management can grow sales. Pressuring valuation expansion will be the lumpy nature of the company’s revenue.

Earnings per share growth will also be more challenging in the near term as the company begins to go up against monster comparisons. The time horizon of this Cliff Note is more long-term oriented.

Kewaunee Scientific Corporation is a recognized leader in the design, manufacture, and installation of scientific and technical furniture

We also want to share a more comprehensive elevator pitch that was provided to us by an investor who convinced us to take a closer look at the stock.

Elevator Pitch an MSM subscriber who brought us the idea and knows the KEQU story well:

KEQU has transformed from a sleepy manufacturing company at the whims of competition and cyclicality, to an energetic growth company behind the energy of a new young CEO and management team. The CEO and the CFO he hired both came from Alleghany ATI, a Teledyne Company.

They are inspired by Henry Singleton and are disciples of the Singleton approach, as well as Buffett and Munger, which drive their decision-making and plans for the Company. Step one was to pull the Company out of the ditch during Covid. I have since transformed the Company’s business model to emphasize cash flow and profitability, and now the evidence is materializing the results.

Step 2 is to not only continue to cut costs to drive efficiencies but, most importantly, to make acquisitions to grow the Company with levered cash flow and EPS growth for many years and likely make aggressive share buybacks opportunistically.

Think of this as the canvas of a possible boring Berkshire Hathaway morphing from a textile company into a dynamic Holding company as they view themselves as not just Operators but Capital allocators. This is the first inning of their journey, and if they succeed, it could be a compounding investment for decades.

Kewaunee is the only industry participant that can provide a complete, one-stop laboratory solution to customers based on its 2 extensive investments in manufacturing capabilities to produce wood and metal casework, flexible metal table systems, fume hoods, ventilated products, and epoxy resin worktops. The industries served by Kewaunee continue to receive prioritization for investment as companies, governments, and institutions look to encourage discovery that requires specialized environments.

The data presented is from the recently published 2023 SEFA Laboratory Enclosures and Furniture Market Report. This remains the most reliable data set available to assess the size and growth trajectory of the markets we serve. As the market leader, I believe Kewaunee is uniquely positioned to capitalize on what continues to be favorable industry growth trends.

Research

Thu, 12 Dec 2024 20:23:40 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($42.83; $123.0M market cap) announced Q2 2025 results:

Sales of $47.7 million vs $50.4 million in the prior year
Adjusted EPS of $1.41 vs $0.93 in the prior year
The Company's order backlog was at a historically high level of $184.4 million on October 31, 2024, as compared to $146.3 million on October 31, 2023, and $155.6 million on April 30, 2024.

"Our financial performance for the second quarter of fiscal year 2025 was strong," said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer. "Domestic segment operating performance improved compared to last year's second quarter as a result of higher product demand, highlighting our continued health and advantage in the market. As discussed during the first quarter of fiscal year 2025, customer construction site delays in India on multiple projects continue to impact our ability to ship products and deliver services, leading to a decrease in sales and earnings when compared to the prior year second quarter."

"Looking ahead, our backlog remains very healthy, demonstrating the continued vitality and investment in the markets in which Kewaunee participates and the success both Kewaunee and our channel partners continue to achieve in the marketplace. The strength of Kewaunee's backlog positions the company well to deliver another strong year for our fiscal year."

"Additionally, on November 1, 2024, Kewaunee announced the acquisition of Nu Aire, Inc.," Hull continued. "Nu Aire is renowned for its manufacturing of robust containment solutions, such as biological safety cabinets, airflow products, and more, which serve a diverse range of industries. While not reflected in our second quarter fiscal year 2025 results, Nu Aire will be included going forward, beginning with our third quarter fiscal year 2025 results. It is worth noting the company incurred expenses related to the acquisition of $2.3 million in the current fiscal year, which are outlined in the attached exhibits."

While revenues were down the company’s EPS grew sharply. It will be interesting to see what the next few quarters look like as the Nu Aire acquisition is integrated and begins to contribute to earnings.

Kewaunee Scientific Corporation is a recognized leader in the design, manufacture, and installation of scientific and technical furniture.

Research

Fri, 01 Nov 2024 14:45:38 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($31.72; $91.1M market cap) announced the completion of the acquisition of Nu Aire, a Minneapolis-based company renowned for its manufacturing of biological safety cabinets, airflow products, CO2 incubators, ultra-low freezers, animal handling equipment, pharmacy compounding isolators, and related parts and accessories.

“The acquisition of Nu Aire by Kewaunee marks a transformative moment for both companies, creating a more robust, diversified organization that is better equipped to serve global laboratory needs. Through this acquisition, the combined organization will enhance its product offerings and market reach, providing its channel partners with new growth opportunities.

Tom Hull noted, "I believe that the combination of complementary products and services, along with operational synergies, will lead to improved operating performance, stronger customer relationships, and sustainable growth."

There are no financial details in the release other than the purchase price of $55 million. Via google search, it seems that Nu Aire had sales of around $68 million in 2023 which is slightly more than a quarter's worth of KEQU’s sales (TTM sales of $202 million).

The transaction was financed by cash on hand, company revolver and a seller’s note. You can see the terms of the deal here.

Kewaunee Scientific Corporation is a recognized leader in the design, manufacture, and installation of scientific and technical furniture

Research

Thu, 12 Sep 2024 16:54:48 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($43.06; $122.2M market cap) announced Q1 2025 results:

Sales of $48.3 million vs $49.8 million in the prior year
Adjusted EPS of $0.93 vs EPS of $0.86 in the prior year
The Company's order backlog was $159.4 million on July 31, 2024, as compared to $140.8 million on July 31, 2023, and $155.6 million on April 30, 2024.

"Our financial performance for the first quarter of fiscal year 2025 was solid," said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer. "Domestic segment operating performance was improved when compared to last year's first quarter as our manufacturing loadings remain at a consistent level. Site delays in India on multiple projects impacted our ability to ship products and deliver services leading to a slightly down quarter when compared to the prior year first quarter."

"Looking ahead, our backlog remains strong and quoting for new projects remains high, providing a line of sight to another strong year for the Company."

It appears that some delays impacted the quarter. Additionally, the comps moving forward become very challenging.

KEQU is a recognized leader in the design, manufacture, and installation of scientific and technical furniture.

Research

Fri, 28 Jun 2024 12:20:12 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($38.74; $111.3M market cap) announced Q4 and full year results:

Q4 Sales of $56.7 million vs $53.9 million in the prior year
Q4 Adjusted EPS of $1.55 vs adjusted EPS of $0.34 in the prior year
Full year sales of $203.7 million vs $219.4 million in the prior year
Full year adjusted EPS of $4.19 vs $0.25 in the prior year

"Fiscal year 2024 was a tremendous year for Kewaunee," said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer. "The Company delivered strong financial results as we continue to realize the benefits of our strategic decisions made in recent years. These results have been recognized by the market, resulting in a significant increase in the Company's market capitalization during the year. This is a testament to the hard work and dedication of Kewaunee's global team who are focused on relentlessly delivering on our commitments to our customers."

"We ended the fiscal year with an order backlog of $155.6 million, increasing from the prior year end. This positions us well for fiscal year 2025 as we continue to see bidding and quoting maintain solid levels. The strength of our order backlog indicates the stability of the markets we serve and our dealer and distribution partners' continued investment in serving our customers."

We recently brought KEQU back into focus after management made moves to discontinue the sale of lower margin products and abandon a distributor strategy to sell its products in the U.S. The result has been a huge increase in margins, as management prepares to start focusing on growing revenue.

Although the stock has been on a tear over the past year, a P/E of only 10x on the Q4 run-rate EPS would imply a price target of $60. Keep in mind that the company does experience some seasonality in sales.

Research

Tue, 23 Apr 2024 14:35:03 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($35.42; $101.8M market cap) announced it will terminate its pension plan effective April 30, 2024.

“The company transferred approximately $17.7 million of pension obligations through the purchase of group annuity contracts for all remaining liabilities under the pension plan. In connection with the transfer, the Company has contributed approximately $0.3 million in cash to the pension plan, which was intended to fully fund the Company’s remaining defined benefit pension liabilities. The pension benefits to which plan participants and their beneficiaries are entitled will not change as a result of the transaction. Plan participants separately will receive additional information regarding the foregoing.”

KEQU is a recognized leader in the design, manufacture, and installation of scientific and technical furniture.

Research

Wed, 03 Apr 2024 15:25:16 GMT

Yesterday, @majgeoinvesting released a Tweet referring to Kewaunee Scientific Corporation (NASDAQ:KEQU), a company engaged in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products.

“There’s a stock I’m revisiting that I passed on at $15. Now, it’s $30 and I absolutely love it. (restructuring processes working like a charm). That’s how investing goes sometimes…a stock can be cheaper at a higher price than when you first found it at a lower price.”

Our first go-around with KEQU was between 2016 to 2019, when we thought the company potentially fit in line with a growth + value theme. We like finding cheap boring stocks that are about to enter a period of elevated growth. This can often lead to an expansion of valuation multiples. While we closed the stock for a negative final return, it reached a peak return of 64.4%.

We will be discussing KEQU in today’s Open Forum.

Research

Thu, 07 Mar 2024 05:00:00 GMT

Reported Q3 2024 results:

Sales of $46.7 million vs $60.8 million in the prior year
EPS of $0.85 vs $0.25 in the prior year

"Our financial performance for the third quarter of fiscal year 2024 was strong," said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer. "As discussed in previous quarterly releases, we are realizing the benefits of executing on our strategic objectives."

"While the third quarter can often be our softest quarter due to the holiday schedule in the US as well as customers looking to wrap up construction projects before the calendar-end, we did not experience a significant slow-down in activity during the quarter. This is a testament to our world-class dealer and distribution network who continue to perform at a high level in response to customer demand."

"Looking ahead, we remain optimistic about the future, with a strong pipeline of projects, a sound strategy, and a commitment to sustained financial performance."

Research

Thu, 07 Dec 2023 17:22:08 GMT

Yesterday, Kewaunee Scientific (NASDAQ:KEQU) ($17.63; $51.1M market cap) announced Q2 2024 results. Focus on higher margin revenue drives strong net income growth for the second quarter in a row.

In September, we highlighted KEQU’s Q1 2024 results and mentioned that It appeared that recent operating efficiency initiatives and the elimination of low margin revenue are already resulting in significant bottom line improvements, possibly setting the stage for some serious, earnings-per-share growth if revenue eventually takes off.

This time around for Q2, while revenues were down, EPS showed massive improvement:

Sales of $50.4 million vs $54.5 million in the prior year
EPS of $0.93 vs a loss of $0.09 in the prior year
The Company's order backlog was $146.3 million on October 31, 2023, as compared to $157.8 million on October 31, 2022, and $147.9 million on April 30, 2023.

“In our first quarter 10-Q, we announced a stock repurchase program and we began re-purchasing stock in our second quarter. We plan to continue purchasing stock under this program in the third quarter as we believe this will provide value to our shareholders. Looking forward, our backlog remains strong, positioning us to continue our positive financial performance during the second half of fiscal year 2024."

At one time, KEQU performed strongly as a model portfolio holding. Now, it’s once again quickly moving up our research funnel.

Research

Fri, 01 Sep 2023 04:00:00 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($17.30; $49.8M market cap), a recognized global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products, is back on our radar due to strong results and backlog.

At one time, the company was a top-performing selection in our Model Portfolios before it ran into some obstacles over the past several years. Under a new management team, the company is putting together some restructuring initiatives that we’re looking into.

It appears that these initiatives are already resulting in significant bottom line improvements, possibly setting the stage for some serious, earnings-per-share growth if revenue eventually takes off.

The company reported Q1 2024 results:

Sales of $49.8 million vs $50.1 million in the prior year
EPS of $0.86 vs a loss of $0.26 in the prior year
The Company's order backlog was $140.8 million on July 31, 2023, as compared to $174.0 million on July 31, 2022, and $147.9 million on April 30, 2023.

"Fiscal year 2024 commenced with an outstanding financial performance for Kewaunee," said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer. "This performance was driven by the investments that we have been making in the Company's domestic operations in continuous improvement, 5-S and cost containment programs, coupled with the capital refreshment program executed over the past year. These capabilities, along with solid customer demand, resulted in a very strong operating performance during the quarter."

"Kewaunee's international business remains strong as the team remains focused on delivering a number of large, multi-year projects that were previously awarded."

"We are operating more efficiently based on our ability to focus solely on supporting our dealer and distribution partners domestically while continuing to provide turnkey solutions in the international markets. Looking forward, this improved focus, combined with a strong global management team, a healthy order backlog, improved manufacturing capabilities, and markets that continue to prioritize investment in projects requiring products Kewaunee designs and manufactures positions the Company well."

Research

Sun, 31 Jul 2022 04:00:00 GMT

Kewaunee Scientific (NASDAQ:KEQU) - Stock back on our radar due to strong results and backlog. On June 29, 2022 the company reported strong Q4 2022 results:

Sales of $49.7 million vs $38.7 million in the prior year
Non-GAAP EPS of $0.78 vs a loss of $1.08 in the prior year
Backlog of $173.9 million, up from 138.1 in January 2022 and up from $114.5 last year

"Kewaunee has posted a record high backlog for the third time in the past four quarters, demonstrating the confidence customers have in our ability to meet their requirements in a dynamic operating environment. Domestically, our order backlog increase has been driven by strength in the life science and higher education end-use markets within the United States. Our international teams continue to see customers investing in large infrastructure projects requiring laboratories in India, the Middle East, and Africa and were awarded multiple, multi-year projects during the year. The strength in our backlog positions the Company well for the next fiscal year as the majority of these orders will deliver over the next twelve to eighteen months."

Research

Sun, 20 Dec 2020 05:00:00 GMT

Kewaunee Scientific (NASDAQ:KEQU) – In June 2019 we removed KEQU from our select long disclosure list on the heels of weak Q4 2019 results. Shares reached highs of $38.80 during its run, or up over 64% from our initial call in September 2016, before being removed at around down 9%.

On December 15, 2020 Director John Russell purchased 4500 shares at an average price of $9.68. We will keep an eye out for more insider buys as the company continues to restructure operations and now deal with the impact from Covid-19. KEQU is also heading into its seasonal weakest quarter (Q3) but is starting to see overall improvements and expects financial performance to begin to come around in Q4

Research

Wed, 19 Jun 2019 15:11:11 GMT

Removing KEQU From Our Select Longs Disclosure List

Kewaunee Scientific (NASDAQ:KEQU) ($21.52; $59.1M market cap), a global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products, announced Q4 2019 results:

Sales of $34.7 million vs $44.5 million
Loss of $0.15 vs EPS of $0.56 in the prior year quarter

"Fiscal year 2019 proved to be a challenging year for Kewaunee," said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer. "The second half of the year was especially demanding, as the Company was unable to convert the quotes necessary to achieve our desired operating levels.

"With a renewed commercial focus, we are beginning to see a reversal of booking trends from fiscal year 2019. We are working actively with our channel partners to improve our win rate and are encouraged by early results. Rebounding from fiscal year 2019 performance is of paramount importance, and I believe the pace of activity and investment in the marketplace is sufficient for Kewaunee to achieve this objective."

In its Q3 2019 results management had stated it expects to return to profitability for Q4. Management has come up short on that goal and has now reported 3 straight quarters of sub par performance. We are moving on from KEQU to other opportunities. Shares reached highs of $38.80 during its run, or up over 64% from our initial call in September 2016.

Management's comments seem to point to a recovery heading into fiscal 2020, but for now, we will take a wait and see approach. Part of what had fueled top line growth over the last several years was due to the Company capturing some revenue from a competitor who had filed for bankruptcy. Now that the low hanging fruit is gone, we need to see what management can do to grow the Company from this point.

Research

Wed, 27 Feb 2019 05:00:00 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($30.70; $84.2M market cap), a global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products, announced Q3 2019 results:

Sales of $32.3 million vs $38.1 million in the prior year
Loss of $0.01 vs EPS of $0.31 in the prior year

"Domestic sales decreased year-over-year as the activity in the marketplace slowed dramatically throughout the quarter. The slowdown, felt across the Company's direct, dealer, and distribution channels, reduced production below the rate necessary to generate favorable financial results. International sales decreased similarly, with strength in the Indian market being offset by softness in the Middle East and Asian markets. Also negatively impacting Kewaunee's International segment performance was a year-over-year decline in the exchange rate of the Indian rupee versus the US dollar.

There still remains a significant amount of activity for our products and services both domestically and abroad; however, economic and geopolitical uncertainty have caused many customers to postpone awards as well as the start of new projects," said David M. Rausch, Kewaunee's President and Chief Executive Officer. "Looking forward, we anticipate these trends will continue through the remainder of the fiscal year and are making the necessary adjustments to return to profitability in the fourth quarter."

After a subpar Q2 where management insinuated that the slight downturn was temporary, this quarter was worse than we could have imagined. Management has completely changed its tone. Even though the company expects to return to profitability in Q4, they do not state how substaintal it could be. As we stated in the past, the company has a history of volatile quarters. But with a strong management team and history of paying healthy dividends, we felt it was worth tracking. The stock has had a volatile history during our coverage period. You can see our past full coverage here.

Research

Mon, 31 Dec 2018 15:48:39 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($29.30; $80.4M market cap), a global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products saw shares rebound strongly during Friday’s trading session. The stock rose 25% ($6.00) on 10x the average volume. It is unclear what caused the moved as we have not seen any news or filings. The stock is still well off its 52 week highs of $38.80 reached earlier this year. Shares have pulled back sharply following sub par Q2 2019 results in early December.

Research

Thu, 06 Dec 2018 17:49:38 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($24.85; $68.1M market cap), a global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products, announced its Q2 2019 results:

Sales of $37.3 million vs $41.5 million in the prior year
EPS of $0.51 vs $0.62 in the prior year

"Kewaunee's Domestic segment had a solid second quarter, offset by softness in our International segment and higher raw material costs," said David M. Rausch, Kewaunee's President and Chief Executive Officer. "Looking forward, we have a strong order backlog and a large pipeline of outstanding quotations. We also expect to see a continuation of the gains in operating performance made during the second quarter. As the market leader, Kewaunee will continue to drive its strategy of worldwide growth through operational excellence to create value for its customers and shareholders."

We still believe the long term story is intact but there will certainly be some headwinds as the company continues to have volatile quarters.

The Company’s regular dividend which was recently increased by 12% could offer some downside support as investors who are interested in the company wait for the longer term story to unfold. At current prices, the company is trading at a trailing P/E of 10.9 with a dividend yield of 2.7%.

Research

Thu, 30 Aug 2018 17:06:58 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($31.40; $86.0M market cap), a global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products, announced its Q1 2019 results on Tuesday evening which we highlighted in yesterday’s note here .

Shortly after the open, KEQU announced that it is raising its quarterly dividend by 12% to $0.19 from $0.17.

While the increase is relatively small, we feel management would likely not have raised the dividend if they felt they did not have the higher material cost under control, a caveat to the quarter we touched on in yesterday’s note.

Research

Wed, 29 Aug 2018 14:34:45 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($33.50; $91.8M market cap), a global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products announced Q1 2019 results:

Sales of $42.1 million vs $33.8 million in the prior year
EPS of $0.50 vs $0.42 in the prior year

"The pace of bidding activity remains solid as customers invest in projects that require the Company's products and services. We are focused on strengthening the order backlog as we move through the year. However, we will continue to be negatively impacted by increases in material costs during the second quarter. We continue to pursue productivity and cost reduction actions to help offset their impact."

Had it not been for lower tax provisions, the EPS growth would of been flat for the quarter. It is good to see the strong revenue growth, but we are taking a close look at our position in regards to how the Company will offset the higher material cost moving forward.

Research

Wed, 27 Jun 2018 15:00:38 GMT

Kewaunee Scientific (NASDAQ:KEQU) ($36.95; $100.6M market cap), a global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products announced Q4 2018 results:

Sales of $44.5 million vs $34.5 million in the prior year
Non-GAAP EPS $0.60 vs $0.51 in the prior year. The company paid a higher tax rate (39%) this quarter than last year, applying last years tax rate of 23% to this quarter would result in EPS of $0.68. (We are awaiting the filing of the 10-K to see the cash flow statement to determine if there were any other one time expense/gains for the fourth quarter.)

"Fiscal year 2018 was another year of growth for Kewaunee as we achieved record sales and pre-tax earnings for the fourth year in a row," said David M. Rausch. "Kewaunee's world class global sales network continues to focus on providing the highest quality products and services to our customers."

"Coming off four strong years, I remain optimistic about Kewaunee's future and anticipate sales and earnings growth in fiscal year 2019. The pace of activity, both domestically and internationally, remains solid as customers are investing in projects that require the products and services we provide."

Backlog was flat sequentially and slightly up year over year, something we want to dig into. However, we have followed KEQU for several years and its backlog can tend to be lumpy.

Research

Wed, 28 Feb 2018 15:22:22 GMT

Kewaunee Scientific (NMS:KEQU) ($27.70; $75.1M market cap), a global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products announced Q3 2018 results:

Sales of $38.1 million vs $30.3 million in the prior year
Non-GAAP EPS of $0.65 vs $0.13 in the prior year
Backlog of $116.1 million vs $106.9 million in the prior year

Quotes from management:

"I am extremely pleased with our performance in the third quarter," said David M. Rausch, Kewaunee's President and Chief Executive Officer. "Our sales and pre-tax profit performance for the quarter were very strong in what is traditionally our weakest quarter. This performance would have resulted in record quarterly earnings being reported had it not been for the additional tax expense recorded in the quarter.

We continue to be awarded significant projects on a global basis which is a testament to the Company's world-wide leadership position and ability to deliver large scale complex projects. Looking forward, our Associates are focused on delivering a solid fourth quarter, and I am optimistic that we will have a strong finish to the current fiscal year," said David M. Rausch, Kewaunee's President and Chief Executive Officer.

KEQU was added to our Buy on Pullback Mock Portfolio 3.0 on October 4, 2016 when the stock was trading at $22.41.

Research

Wed, 06 Dec 2017 18:32:07 GMT

Sales of $41.4 million vs $36.3 million in the prior year
EPS of $0.62 vs $0.54 in the prior year
Backlog of $118 million vs $1010.1 million in the prior year

Quotes from management:

“We had a solid second quarter and continue to secure new orders in the marketplace as evidenced by the strong growth in our order backlog. This is very encouraging as our quarterly sales performance was higher than the second quarter of the prior year. We remain focused on exceeding our customers' expectations as they continue to invest in projects that require the quality products and services we provide," said David M. Rausch, Kewaunee's President and Chief Executive Officer.

Looking forward, our third quarter is typically our most challenging; however, we have a strong order backlog for the quarter and the remainder of the year. We have successfully increased our manufacturing capacity in anticipation of this demand and expect sales and earnings growth to continue through the balance of the fiscal year."

KEQU was added to our Buy on Pullback Mock Portfolio 3.0 on October 4, 2016 when the stock was trading at $22.41.

Research

Thu, 14 Sep 2017 15:37:52 GMT

KEQU and ZAGG both hit new 52 week highs in yesterday’s trading session.

ZAGG shares hit a new high of $13.25 on the heels of its new protective glass screen for the iPhone 8. ZAGG was added to our Buy on Pullback Mock Portfolio 4.0 on March 8, 2017 when the stock was trading at $6.70. Shares are currently up 91%.
KEQU shares hit and closed at a new 52 week high of $28.35. Despite subpar Q1 2018 results, the Company’s increased backlog, increased dividend and positive outlook for fiscal 2018 have propelled shares higher. KEQU was added to our Buy on Pullback Mock Portfolio 3.0 on October 4, 2016 when the stock was trading at $22.41. Shares are currently up 26.5%. While it took longer than we had hoped, patience is beginning to pay off.

Mock 3.0’s current return average is 16.% and peak return average is 33.3%

Mock 4.0’s current return average is 56.4% and peak return average is 59.5%

Research

Wed, 30 Aug 2017 13:49:36 GMT

KEQU ($25.60) announced Q1 2018 results and increased its quarterly dividend by 13%.

Sales of $33.8 million vs $37.3 million in the prior year
EPS of $0.42 vs $0.48 in the prior year

Quotes from management:

"Sales were down $3.4 million in the first quarter due to timing of customer demand, while the Company's order backlog grew $25 million. As a result, the order backlog increased 29% to $111.2 million as of July 31, 2017, as compared to $86.2 million as of July 31, 2016.

The Company continues to increase its manufacturing capacity to satisfy the increase in customer demand. At the same time, the Company's gross margins are benefiting from the continued execution of its cost and productivity programs.

During the first quarter we continued to close major orders in the marketplace due to our reputation for quality and service as evidenced by the significant increase of our order backlog. Looking forward, the Company is competing for a number of large projects that will continue to strengthen the order backlog as they are awarded," said David M. Rausch, Kewaunee's President and Chief Executive Officer. "Customers turn to Kewaunee in recognition of our ability to deliver large complex projects on a global scale. I remain optimistic that fiscal year 2018 will result in increased sales and earnings."

The company also announced it has increased its quarterly cash dividend to $0.17 from $0.15. While the results for the quarter were down, being that it was mainly due to timing issues and the Company was able to increase its backlog and offer bullish commentary for the remainder of fiscal 2018, we are continuing to hold our long position.

Research

Wed, 21 Jun 2017 14:30:20 GMT

KEQU ($23.32)announced Q4 2017 results:

Sales of $34.5 million vs $34.1 million in the prior year
EPS of $0.51 vs $0.50 in the prior year

Quotes from management:

"Fiscal year 2017 was another year of continued growth for Kewaunee as we achieved record sales and net earnings," said David M. Rausch. "The Kewaunee Associates continue to focus on delivering world-class products to our customers, and our success is a testament to their dedication. The Company finished the year with another strong backlog and continues to focus on productivity and efficiency projects that I believe will continue to enhance the Company's long-term success.

Coming off three strong years, I continue to be optimistic about Kewaunee's future and anticipate continued sales and earnings growth in fiscal year 2018. The pace of activity, both domestically and internationally, remains solid as customers continue to invest in projects that require the products and services that we provide."

Research

Wed, 01 Mar 2017 16:19:40 GMT

KEQU ($25.25) reported Q3 2017results:

Sales of $30.3 vs $32.4 million in the prior year
EPS of $0.13 vs $0.31 in the prior year
Backlog of $106.9 million vs $95.2 million

Quotes from management:

"I am extremely pleased with our order backlog, which is a record for Kewaunee, and a strong foundation for future quarters," said David M. Rausch, Kewaunee's President and Chief Executive Officer. "We were awarded another large $8.4M order in the third quarter with City University of New York, NYCCT New Academic Building. This award as well as the $18.5M contract awarded in the second quarter for the Kuwait University Sabah Al-Salem University City at the College of Science continues to affirm Kewaunee's leadership in the global laboratory furniture and fume hood marketplace."

"Looking forward, our Associates are focused on delivering a solid fourth quarter, and I am optimistic that the results for the current fiscal year will finish strong."

It seems some delays in orders weakened Q3 sales, which will be pushed into Q4. However, the company did not address why margins decreased on similar levels of revenues compared to Q3 of 2016. KEQU will remain part of Mock Portfolio 3.0, but will likely take a bit longer to play out as we expect shares to be weak on this report.

Research

Wed, 04 Jan 2017 19:44:46 GMT

KEQU ($24.60) announced it was awarded a $8.4 million contract from the the City University of New York. Through some conversations, we understand there may be a pending bill, that if passed would provide more funding for the scientific equipment industry. We are looking for more information on this bill to vett the details.

Research

Wed, 07 Dec 2016 15:19:52 GMT

KEQU ($24.60) - We initiated a long position in KEQU after strong Q1 2017 results in late August. See our original note here. KEQU designs, manufactures, and installs laboratory, health care, and technical furniture products.

Yesterday after the close, KEQU reported Q2 2017 results:

Sales of $36.3 million vs $31.0 in the prior year
EPS of $0.54 vs $0.26 in the prior year
Backlog of $101.0 million vs $$92.4 million in the prior year

Comments from management:

“The growth in Domestic sales was a result of continued strength of incoming orders across our distribution channels as the marketplace for laboratory furniture and scientific equipment in the United States continued to improve. International sales were strong as we finished deliveries on multi-year laboratory projects in India and Kuwait...

Looking forward, our third quarter is always our most challenging due to the holidays as well as customers managing their year-end inventory; however, I am optimistic that the results for the current fiscal year will be strong as we continue to see new opportunities worldwide."

Contract Awards

Tue, 20 Sep 2016 16:25:12 GMT

STATESVILLE, N.C., Sept. 19, 2016 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU) today announced that, through its dealer ATC, it has been awarded a contract valued at approximately $18.5 million for the new College of Science complex for Kuwait University's Sabah Al-Salem University City. This is the second College at the new Sabah Al-Salem University City for which Kewaunee will be supplying Laboratory furniture, fume hoods, and related products. We are nearing completion of our contract for providing similar products for the College of Engineering and Petroleum complex.

"We are delighted and very proud to have been selected to continue working with Kuwait University, Turner Projacs JV, MCC, and the entire construction team on this world-class complex for higher education," said David M. Rausch, Kewaunee Scientific's President and Chief Executive Officer. "Being selected to continue to provide the highest quality products and services to Kuwait University's Sabah Al-Salem University City at the College of Science complex is further indication of our commitment to theMiddle East and a reflection of our industry leading reputation and the ability of our experienced international team in servicing the important Middle East market."

Research

Thu, 01 Sep 2016 13:43:08 GMT

Initiated a Long Position In KEQU ($23.65)

In yesterday’s (August 31, 2016) email we highlighted KEQU’s strong Q1 2017 financial results:

Sales of $37.3 million vs $31.1 million
EPS of $0.48 vs $0.35 in the prior year

We thought shares would open up much higher than they did. We established a long position in the low $23 area. We will be reaching out to management to learn more about the Company’s growth outlook. Commentary in the Q1 2017 press release was bullish:

"Looking forward, I remain optimistic that sales will continue to increase in fiscal year 2017. I expect our earnings improvement to be sustainable as our order backlog and opportunities in the market remain strong."

After the market opened yesterday, in a separate press release, KEQU announced a 15% increase in its quarterly dividend to $0.15 from $0.13. Management made it a point to once again stress that the business outlook was very bullish:

“We are confident the recent improvements in our financial results reflect sustainable operating improvements in our core business.”

Shares currently trade a trailing P/E of 15.2 and carry a dividend yield of 2.5% . We think KEQU could fit right in line with our growth + value them we like so much. We like finding cheap boring stocks that are about to enter a period of elevated growth. This can often lead to a temporary expansion of valuation multiples.

Research

Wed, 31 Aug 2016 15:37:50 GMT

KEQU ($22.42) reported Q1 2017results:

Sales of $37.3 million vs $31.1 million
EPS of $0.48 vs $0.35 in the prior year

Comments from management:

"We had a very strong first quarter with our Domestic and International businesses posting strong year-over-year sales growth," said David M. Rausch, Kewaunee's President and Chief Executive Officer. "We have grown our sales and net earnings, continuing to operate at high levels and benefiting from ongoing productivity improvements and cost reduction programs.

Looking forward, I remain optimistic that sales will continue to increase in fiscal year 2017. I expect our earnings improvement to be sustainable as our order backlog and opportunities in the market remain strong."

Comments & Business Outlook

Wed, 22 Jun 2016 15:18:35 GMT

KEQU ($16.94) - Reported Q4 2016 results:

Sales of $34.1 million vs $30.3 million in the prior year
EPS of $0.50 vs $0.23 in the prior year

Quotes from management:

"The fourth quarter was our strongest quarter of fiscal year 2016 as we continue to benefit from increased project activity across all of our key markets…

...Fiscal Year 2016 was a strong year for Kewaunee as we delivered record sales and improved profitability," said David M. Rausch. "I am extremely proud of the Kewaunee Associates across the globe who continue to strive to meet the needs and growing expectations of our customers. I am also encouraged by the continued strength of our order backlog and the opportunities we are winning globally.

Looking forward, I am optimistic we will continue to experience sales and earnings growth in fiscal year 2017. Bookings continue to be strong, and our order backlog is at record levels. The pace of activity domestically and internationally is stronger than in previous years as customers continue to invest in projects that require new laboratory furniture and fume hoods."

Comments & Business Outlook

Wed, 05 Mar 2014 05:00:00 GMT

Third quarter 2013 Financial Results

Sales for the quarter were $26,013,000, a decline of 5% from sales of $27,450,000 in the third quarter last year.
Net earnings for the quarter were $604,000, or $0.22 per diluted share, as compared to net earnings of $544,000, or $0.21 per diluted share, in the third quarter last year.

"We continued to make excellent progress during the quarter," said David M. Rausch, Kewaunee's Chief Executive Officer. "I am pleased with sales and earnings, particularly since the third quarter is historically our slowest due to normal construction cycles and the large number of holidays. Also, we continued to make good progress in the quarter against our goals to strengthen the Kewaunee brand, strengthen relationships with existing customers, build relationships with new and prospective customers, reduce costs, and increase market share.

"Our Associates in Statesville did an excellent job controlling manufacturing and operating costs during the quarter. These lower costs are allowing us to continue to be very competitive in the domestic marketplace where fewer new projects available have intensified pressure on project selling prices. Our international team also made excellent progress during the quarter in winning projects, expanding and strengthening the Kewaunee sales organization, and strengthening the Kewaunee brand name globally.

"Looking forward, we expect that the financial results for the fourth quarter will likely be in line with, or slightly better than, the past two quarters."

Comments & Business Outlook

Wed, 04 Dec 2013 05:00:00 GMT

Second Quarter 2014 Results

Sales for the quarter were $26,098,000, as compared to sales of $31,185,000 in the second quarter last year.
Net earnings for the quarter were $725,000, or $0.28 per diluted share, as compared to net earnings of $649,000, or $0.25 per diluted share, in the second quarter last year.
The order backlog was $69.5 million at October 31, 2013, as compared to $71.1 million at July 31, 2013.

"We had a good quarter, both internationally and domestically," said David M. Rausch, Kewaunee's Chief Executive Officer. "Although sales and earnings were below the pace of the past several quarters, a good portion of the sales decline was related to our strategy to improve product mix and margins. We also continue to make excellent progress in strengthening our relationships with laboratory planners and architects. Through this process we are gaining a better understanding of their needs and desired products, which increases their preference for the Kewaunee brand.

"Looking forward to the second half of our fiscal year, we expect the domestic marketplace will continue to be challenging due to the uncertainty in the economy and the resulting softening in demand for our products. We continue to pursue new sales opportunities, domestically and internationally, and maintain our focus on cost savings initiatives throughout the organization. It should be pointed out that our third quarter is normally the slowest due to construction cycles and the large number of holidays. The comparable third quarter of last year was an exception to this norm, as several large international projects shipped during that quarter."

Comments & Business Outlook

Wed, 28 Aug 2013 04:00:00 GMT

First Quarter 2014 Financial Results

Sales for the quarter were $32,003,000, up 19.9% from sales of $26,683,000 in the first quarter last year.
Net earnings for the quarter were $1,587,000 or $0.61 per diluted share, up from net earnings of $634,000, or $0.25 per diluted share, in the first quarter of the prior year.
The order backlog was $71.1 million at July 31, 2013, as compared to $80.2 million at April 30, 2013. The lower order backlog reflects several factors, including the composition of the Domestic backlog, which continues to transition to a higher percentage of orders received through the Company's dealer organization.

"We had an excellent quarter, both domestically and internationally," said David M. Rausch, Kewaunee's President and Chief Executive Officer. "During the quarter, the Company substantially benefited from the favorable timing of several projects. I also am extremely pleased with the performance achieved throughout our organization. In Statesville where Domestic sales were up nearly 20% over the prior year, our Metal Plant and Epoxy Resin Plant produced record shipments, while maintaining high levels of quality and productivity. Our International Operations also had an excellent quarter with sales up nearly 22% over the prior year. Despite these much higher volumes, our Associates continued to do an excellent job in controlling operating costs.

"Looking forward, the Company expects physical year 2014 to perform favorably over fiscal year 2013, although typically we experience variations in results from quarter-to-quarter due to our customers' construction schedules."

Acquisition Activity

Tue, 09 Jul 2013 04:00:00 GMT

STATESVILLE, N.C., July 8, 2013 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU), a recognized global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products, today announced that it had acquired all of the outstanding minority shares of its subsidiary in Singapore, Kewaunee Labway Asia Pte. Ltd.

Through its headquarters in Singapore and its subsidiary in India, Kewaunee Labway Asia serves as the Company's international center for sales and installation of laboratory furniture products and fume hoods. Kewaunee Labway Asia had consolidated sales ofapproximately $17 million in its most recent fiscal year. The transaction is expected to be accretive to earnings beginning in the current fiscal year.

Kewaunee Labway Asia was formed in Singapore in 1998 under a partnership agreement between the Company and Labway Scientific Co. Pte. Ltd. to sell and distribute the Company's laboratory furniture products and fume hoods into the fast growing laboratory research market in Singapore. Kewaunee Labway Asia quickly became the recognized leader for these products inSingapore, and in 2000, its sales organization expanded into India with the formation of Kewaunee Labway India Pvt. Ltd. to serve the expanding India laboratory research market. To support the growing sales in India and surrounding markets, in 2002 Kewaunee Scientific Corporation opened an assembly operation in Bangalore, India, which was replaced in 2009 with a state-of-the-art facility with full manufacturing capabilities. Today, through the combined efforts of Kewaunee Scientific Corporation and its subsidiaries, the Company has grown to be a recognized global leader in the design, manufacture, and installation of laboratory products in the international markets of India, Singapore, China, Thailand, Malaysia, Philippines, Taiwan, Indonesia, Saudi Arabia, Kuwait, UAE, Qatarand other regional countries.

"The purchase of the minority shares provides us a sound foundation for further international growth," said David M. Rausch, President and Chief Executive Officer. "This is an indication of our continuing commitment to capitalize on opportunities in the global marketplace, particularly in the growth markets of India, Singapore, China, and the Middle East."

Comments & Business Outlook

Tue, 25 Jun 2013 04:00:00 GMT

Fourth Quarter 2013 Results

Sales for the fourth quarter were a record $31,803,000, up 9.7% from sales of $28,990,000 in the same period of the prior year.
Net earnings for the quarter were $1,217,000, or $0.46 per diluted share, as compared to earnings of $1,256,000, or $0.49 per diluted share, in the same period of the prior year.
The order backlog was $80.2 million at April 30, 2013, as compared to $86.2 million at April 30, 2012. The change in the backlog reflects the manufacturing and shipping of a large international order during the year, which was partially offset by a small increase in the domestic order backlog.

"Fiscal year 2013 was an excellent year," said William A. Shumaker, Kewaunee's Chief Executive Officer. "I am pleased that we exceeded our sales and earnings goals and made excellent progress against our goals to strengthen the Kewaunee brand, strengthen relationships with existing customers, build relationships with new and prospective customers, reduce costs, and increase market share. The progress in all of these areas not only resulted in record sales for the fourth quarter and year, but it provides momentum as we enter the new year.

"As I look forward to fiscal year 2014, I expect progress to continue in all of the above areas. Although my retirement will take me out of the day-to-day operations of the Company as of the end of this month, I have the utmost confidence in the members of the management team, each of whom has many years of valuable experience in the laboratory furniture industry."

Regular Dividend News

Thu, 30 May 2013 04:00:00 GMT

STATESVILLE, N.C., May 29, 2013 /PRNewswire/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) announced today its Board of Directors declared a quarterly cash dividend of ten cents per outstanding share, payable on June 24, 2013 to stockholders of record at the close of business on June 10, 2013.

Comments & Business Outlook

Wed, 27 Feb 2013 05:00:00 GMT

Third Quarter 2013 Results

.Sales for the quarter were $27,450,000, up 27% from sales of $21,574,000 in the third quarter last year.
Net earnings for the quarter were $544,000, or $0.21 per diluted share, as compared to a net loss of $122,000, or $0.05 per diluted share, in the third quarter last year.
The order backlog was $84.5 million at January 31, 2013, up from $77.1 million at January 31, 2012.

"We continued to make excellent progress during the quarter," said William A. Shumaker, Kewaunee's Chief Executive Officer. "I am pleased with sales and earnings, particularly since the third quarter is historically our slowest due to normal construction cycles and the large number of holidays. We continue to see positive results from our strengthened domestic dealer network and our broadened international dealer network. When combined with our lower manufacturing costs, this is providing us with more opportunities to close orders in both of these geographic markets.

"Looking forward, we expect to have a strong finish to our year. Incoming orders and customer delivery requirements for our metal furniture, fume hoods, and epoxy resin products have provided us a strong backlog of orders scheduled to ship in the fourth quarter. This increased demand and our lower costs are expected to more than offset the continuing lower demand for publicly-funded wood educational projects. It should be mentioned that results for the fourth quarter of last year were unusually strong, as results were favorably impacted by several large international projects that were manufactured and shipped during the quarter."

Comments & Business Outlook

Wed, 22 Aug 2012 04:00:00 GMT

First Quarter 2013 Results

Sales for the quarter were $26,683,000, up 1.4% from sales of $26,321,000 in the first quarter last year.
Net earnings for the quarter were $634,000, or $0.25 per diluted share, up from net earnings of $22,000, or $0.01 per diluted share, in the first quarter of the prior year.
The order backlog increased to a record $86.7 million at July 31, 2012, up from $86.2 million at April 30, 2012 and $69.7 million at July 31, 2011.

"We are pleased with our continuing progress," said William A. Shumaker, Kewaunee's Chief Executive Officer. "Sales and earnings are benefiting from our strengthened and expanded dealer network, new innovative products being introduced to the marketplace, and lower manufacturing and overhead costs. Additionally, earnings and profit margins are benefiting from an improved product mix related to our strategy to sell more laboratory projects through our dealer network.

"Looking forward, I expect sales and earnings for fiscal year 2013 to be much improved over fiscal year 2012. Our strengthened dealer organization, both domestically and internationally, is providing us increased opportunities for sales and orders, while our lower operating costs are improving profit margins and making us more competitive in the marketplace."

Pump and Dump Watch

Mon, 02 Jul 2012 04:00:00 GMT

Disclosure: GeoInvesting is providing this information for your edification and in no way has any affiliation with any promoters and/or newsletters disseminating information on KEQU, nor is GeoInvesting being paid to post this information. At times, the GeoTeam may trade P&D's on a long or short basis, depending on how we feel the momentum of the stocks will be affected by the efforts of stock promoters and any ensuing dumps.

Comments & Business Outlook

Wed, 27 Jun 2012 04:00:00 GMT

Fourth Quarter 2012 Results

Net earnings for the fourth quarter were $1,256,000, or $0.49 per diluted share, up from net earnings of $252,000, or $0.10 per diluted share, in the same period of the prior year.
Sales for the quarter were $28,990,000, up 8% from sales of $26,952,000 in the same period of the prior year. Sales from domestic operations were $19,607,000, down 10% from sales of $21,797,000 in the prior year.

The order backlog increased to a record $86.2 million at April 30, 2012, up from $65.7 million at April 30, 2011, with both domestic and international orders contributing to the growth. The backlog at April 30, 2012 includes a contract awarded during the quarter for laboratory furniture and equipment for the Kuwait University College of Engineering and Petroleum-Women's Campus. The contract, which is in excess of $11 million, was awarded through Kewaunee's dealer in Kuwait, Advanced Technology Company (ATC). The Company expects to begin manufacturing and shipping products under the contract in the late summer or early fall of calendar year 2013. The majority of the manufactured products will be produced at the Company's Statesville facilities. This contract is another indication of the Company's increased international presence and capabilities.

"We are very pleased with our operating results for the quarter," said William A. Shumaker, Kewaunee's Chief Executive Officer. "Our international operations had an outstanding quarter for sales and earnings, as manufacturing and shipping occurred under several large contracts. In Statesville, earnings improved significantly, as we experienced lower operating costs resulting from cost savings initiatives."

Outlook

"Looking forward to fiscal year 2013, I remain cautiously optimistic," Mr. Shumaker continued. "My optimism is based on a number of factors. On the domestic front, we enter the year with a strengthened and expanded dealer network, which we believe will result in increased sales and earnings. We are also realizing lower operating costs from our cost savings initiatives put in place over the past year. On the international front, we have also strengthened and expanded our dealer network, better positioning us to take advantage of the growing number of laboratory project opportunities in Asia and the Middle East. Furthermore, both domestic and international operations will benefit from our record order backlog.

"At the same time, fiscal year 2013 will present us with significant challenges. The ongoing world-wide economic slowdown continues to depress construction activity and pricing in the marketplace. Customer delivery requirements for large international projects, more so than domestic projects, often are delayed due to changes in construction schedules, resulting in uneven reportable sales and earnings."

GeoSpecial Notes

Thu, 24 Jun 2010 04:00:00 GMT

We are removing Kewaunee Scientific from the GeoSpecial list. EPS growth has not been spectacular or consistent. Furthermore, The company is also highly dependent on the economy, which is still in a fragile state.

Added to the GeoBargain list on June 24, 2009 @ $11.10

Peak performance: Reached a high of $13.10 on August 26, 2009.

Removed from the GeoBargain list and Added to the GeoSpecial list on August 29, 2009 @ $13.10

Peak performance: Reached a high of $16.42 on February 25, 2010 .
Current Price: $11.65

Comments & Business Outlook

Wed, 26 Aug 2009 04:00:00 GMT

"Overall, the markets for our products are continuing to hold up well under the global economic slowdown. The domestic laboratory furniture marketplace continues to be healthy, particularly for larger construction projects where our bidding activity remains strong. We also continue to experience good overall bidding activity for smaller domestic laboratory projects, with the level of activity varying by geographic area and market segment. The international laboratory marketplace, while softer than last year, is providing an increasing number of opportunities. The full manufacturing capabilities and lower costs of our new plant in Bangalore, India, are making us more competitive in the Asian marketplace. Both the domestic and international markets remain highly-competitive."

Source: PR Newswire (August 25, 2009)

GeoBargain Notes

Wed, 26 Aug 2009 04:00:00 GMT

Kewaunee Scientific (NASDAQ:KEQU) was added to the GeoBargain list on June 24, 2009, due to strong April ending 2009 fourth quarter results. Yesterday, the Company reported its 2010 first quarter financial results, prompting the GeoTeam® to reconsider KEQU 's inclusion on the GeoBargain list. Top and bottom line growth were well below the minimum GeoBargain requirements.

1st QUARTER 2010 vs. 2009 FINANCIAL SNAPSHOT ENDED JULY

	1st Quarter 2010	1st Quarter 2009	Period Change
GAAP Revenue	$26.2 million	$25.4 million	3.0%
GAAP EPS	$0.42	$0.38	10.5%

Source: See Release, August 26, 2009

Select Valuation Items

Price: $13.10 (8/25/09)
Trailing P/E: 7.71
PEG Ratio: 0.73
Book Value Per Share: 11.49

The stock still reacted positively to yesterday morning's financial news, possibly a reaction to the company also announcing a 25% increase in its quarterly dividend. This action could signify that better earnings per share growth is in the cards for the remainder of the year. There are also positive overtones in the fact that over the last three years Kewaunee Scientific 's second quarter has been sequentially higher than its first quarter. Still, it doesn't appear that KEQU will be able to achieve the GeoBargain required growth traits for 2009. Notwithstanding this shortcoming, the stock is still selling at a P/E of 7.71 and a PEG ratio under 1 which may attract value investors. Accordingly, we are reclassifying KEQU as a GeoSpecial. If the stock can attain a modest P/E of 10, matching its 2009 first quarter EPS growth rate, then it could reach $17.70.

Financials

Wed, 26 Aug 2009 04:00:00 GMT

1st QUARTER 2010 vs. 2009 FINANCIAL SNAPSHOT ENDED JULY

	1st Quarter 2010	1st Quarter 2009	Period Change
GAAP Revenue	$26.2 million	$25.4 million	3.0%
GAAP EPS	$0.42	$0.38	10.5%
Fully Diluted Shares	2.56 million	2.57 million	0.0%

Source: See Release, August 26, 2009

FULL YEAR 2009 vs. 2008 FINANCIAL SNAPSHOT ENDED APRIL

	Full Year 2009	Full Year 2008	Period Change
GAAP Revenue	$103.98 million	$89.51 million	16.17%
GAAP EPS	$1.66	$1.23	34.96%
Fully Diluted Shares	2.56 million	2.56 million	0.0%

Source: See Release, June 24, 2009

Comments & Business Outlook

Wed, 24 Jun 2009 04:00:00 GMT

'Looking toward fiscal year 2010, we believe a number of factors have the Company well-positioned for another good year,' continued Mr. Shumaker. 'A healthy domestic laboratory furniture marketplace, our record order backlog, and excellent performances by our factories are providing us strong momentum. The Asian laboratory furniture marketplace, which was soft the past year, is expected to improve and provide increased opportunities. The move to our new, modern plant in Bangalore, India, is now complete. This plant has full manufacturing capabilities which positions us to compete more broadly for additional projects in Asia and the Middle East. Next year will also present a number of challenges. These include uncertainty as to when the global economic slowdown will end and higher pension costs for the Company due to losses in our pension investments portfolio.'

Source: PR Newswire (June 24, 2009)