U.S. stocks edge higher; solid earnings season continues
Investing.com -- Cadre Holdings Inc. (NYSE:CDRE), a manufacturer of safety equipment for law enforcement and military markets, saw its shares tumble 10.7% after the company issued weaker-than-expected full-year revenue guidance despite reporting better-than-expected second quarter results.
The company reported second quarter adjusted earnings of $0.30 per share, exceeding analyst estimates of $0.26. Revenue came in at $157.1 million, surpassing the consensus estimate of $153.61 million and representing a 9% increase compared to the same quarter last year. Gross profit rose 10% YoY with margins improving to 40.9% from 40.6% in the prior-year period.
However, investors focused on Cadre’s disappointing full-year outlook. The company now expects 2025 revenue between $624 million and $630 million, below analyst expectations of $630.5 million. Management cited shifting timelines for large orders as a key factor affecting their outlook.
"We delivered strong revenue growth and profitability in the second quarter, despite a fluid macro environment," said Warren Kanders, CEO and Chairman. "We have seen the timing of large opportunities shift more than in prior years, but we believe we are well positioned to continue to leverage our strong brands and drive growth over the long term."
The company’s second quarter performance was primarily driven by recent acquisitions, particularly in the nuclear safety segment. Adjusted EBITDA for the quarter was $27 million with a margin of 17.2%, compared to $28.3 million and 19.6% in the year-ago period.
Cadre maintained its quarterly dividend of $0.095 per share, payable on August 15 to shareholders of record as of August 1. The company ended the quarter with $137.5 million in cash and cash equivalents, up from $124.9 million at the end of 2024.
Management noted that its updated guidance does not incorporate potential impacts from new tariffs announced on July 31 that are expected to take effect in August.
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