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Industrial materials and tools company Kennametal (NYSE:KMT) will be reporting results tomorrow morning. Here’s what you need to know.
Kennametal missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $482.1 million, down 2.7% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations.
Is Kennametal a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kennametal’s revenue to decline 5.2% year on year to $488.8 million, a further deceleration from the 3.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kennametal has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Kennametal’s peers in the professional tools and equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ESAB’s revenues decreased 1.7% year on year, beating analysts’ expectations by 2.2%, and Hillman reported revenues up 2.6%, falling short of estimates by 0.5%. ESAB traded up 3.1% following the results while Hillman was down 7.5%.
Read our full analysis of ESAB’s results here and Hillman’s results here.
There has been positive sentiment among investors in the professional tools and equipment segment, with share prices up 12.3% on average over the last month. Kennametal is up 10.6% during the same time and is heading into earnings with an average analyst price target of $21.31 (compared to the current share price of $19.96).
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