Kennametal (NYSE:KMT) Announces Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Kennametal (NYSE:KMT) issued its quarterly earnings results on Wednesday. The industrial products company reported $0.30 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.01), Briefing.com reports. Kennametal had a return on equity of 9.94% and a net margin of 5.86%. The business had revenue of $515.80 million during the quarter, compared to the consensus estimate of $518.50 million. During the same quarter last year, the firm posted $0.39 earnings per share. Kennametal’s revenue was down 3.8% compared to the same quarter last year. Kennametal updated its FY24 guidance to $1.40-1.55 EPS and its FY 2024 guidance to 1.400-1.550 EPS.

Kennametal Stock Up 2.5 %

Shares of NYSE KMT traded up $0.64 during trading hours on Thursday, hitting $25.99. The stock had a trading volume of 603,298 shares, compared to its average volume of 631,980. The company has a market capitalization of $2.06 billion, a P/E ratio of 17.33, a P/E/G ratio of 3.29 and a beta of 1.76. The firm’s 50-day moving average price is $24.38 and its two-hundred day moving average price is $24.35. Kennametal has a 52 week low of $22.08 and a 52 week high of $30.60. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.06 and a current ratio of 2.44.

Kennametal Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, May 28th. Stockholders of record on Tuesday, May 14th will be issued a $0.20 dividend. The ex-dividend date is Monday, May 13th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.08%. Kennametal’s dividend payout ratio is 53.33%.

Kennametal declared that its Board of Directors has authorized a share repurchase plan on Wednesday, February 7th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the industrial products company to reacquire up to 10.6% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity at Kennametal

In related news, VP John Wayne Witt sold 1,000 shares of the business’s stock in a transaction that occurred on Thursday, March 7th. The stock was sold at an average price of $25.55, for a total value of $25,550.00. Following the completion of the sale, the vice president now owns 1,343 shares of the company’s stock, valued at approximately $34,313.65. The sale was disclosed in a document filed with the SEC, which is available at this link. 1.79% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on KMT shares. JPMorgan Chase & Co. dropped their price target on shares of Kennametal from $26.00 to $24.00 and set an “underweight” rating on the stock in a research report on Thursday, February 8th. Barclays boosted their price target on shares of Kennametal from $24.00 to $25.00 and gave the stock an “equal weight” rating in a research report on Thursday. Finally, StockNews.com upgraded shares of Kennametal from a “hold” rating to a “buy” rating in a research report on Tuesday, April 30th. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $24.75.

Kennametal Company Profile

Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.