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

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

Kennametal Stock Performance

NYSE:KMT traded up $0.64 during trading hours on Thursday, reaching $25.99. The stock had a trading volume of 603,298 shares, compared to its average volume of 631,980. The stock has a market cap of $2.06 billion, a P/E ratio of 17.33, a price-to-earnings-growth ratio of 3.29 and a beta of 1.76. The stock has a 50 day simple moving average of $24.38 and a 200 day simple moving average of $24.35. 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 has a 12-month low of $22.08 and a 12-month high of $30.60.

Kennametal Dividend Announcement

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

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the stock. StockNews.com raised shares of Kennametal from a “hold” rating to a “buy” rating in a report on Tuesday, April 30th. Barclays upped their price objective 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, JPMorgan Chase & Co. dropped their target price 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. Two investment analysts have rated the stock with a sell rating, two have issued a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat.com, Kennametal currently has an average rating of “Hold” and a consensus target price of $24.75.

Kennametal declared that its board has approved a stock repurchase plan on Wednesday, February 7th that permits the company to repurchase $200.00 million in outstanding shares. This repurchase authorization permits the industrial products company to buy up to 10.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s management believes its shares are undervalued.

Insider Activity

In related news, VP John Wayne Witt sold 1,000 shares of Kennametal stock in a transaction dated 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 legal filing with the SEC, which is available at this hyperlink. Insiders own 1.79% of the company’s stock.

About Kennametal

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.