Zacks: Analysts Expect Kennametal Inc. (KMT) Will Post Earnings of $0.88 Per Share

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Wall Street analysts predict that Kennametal Inc. (NYSE:KMT) will announce $0.88 earnings per share (EPS) for the current quarter, according to Zacks. Five analysts have provided estimates for Kennametal’s earnings, with estimates ranging from $0.85 to $0.91. Kennametal reported earnings of $0.87 per share in the same quarter last year, which would indicate a positive year over year growth rate of 1.1%. The business is expected to issue its next quarterly earnings report on Monday, August 5th.

On average, analysts expect that Kennametal will report full year earnings of $3.06 per share for the current financial year, with EPS estimates ranging from $3.03 to $3.09. For the next financial year, analysts expect that the business will report earnings of $3.40 per share, with EPS estimates ranging from $3.25 to $3.67. Zacks’ earnings per share calculations are an average based on a survey of sell-side research analysts that follow Kennametal.

Kennametal (NYSE:KMT) last posted its quarterly earnings results on Monday, May 6th. The industrial products company reported $0.77 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.79 by ($0.02). Kennametal had a return on equity of 19.66% and a net margin of 10.28%. The business had revenue of $597.20 million during the quarter, compared to the consensus estimate of $626.27 million. During the same quarter in the previous year, the company earned $0.70 earnings per share. The company’s revenue for the quarter was down 1.8% compared to the same quarter last year.

Several research firms have weighed in on KMT. Barclays upgraded Kennametal from an “equal weight” rating to an “overweight” rating and upped their price target for the stock from $38.00 to $44.00 in a research note on Wednesday, April 3rd. ValuEngine downgraded Kennametal from a “hold” rating to a “sell” rating in a research report on Friday. Zacks Investment Research downgraded Kennametal from a “hold” rating to a “sell” rating in a research report on Wednesday. Finally, KeyCorp lowered their target price on Kennametal from $52.00 to $47.00 and set an “overweight” rating for the company in a research report on Wednesday. Three analysts have rated the stock with a sell rating, three have given a hold rating and four have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average price target of $46.00.

In other news, VP Peter A. Dragich sold 35,346 shares of the stock in a transaction that occurred on Friday, February 22nd. The stock was sold at an average price of $38.59, for a total transaction of $1,364,002.14. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Patrick S. Watson sold 2,265 shares of the stock in a transaction that occurred on Wednesday, February 20th. The shares were sold at an average price of $37.93, for a total value of $85,911.45. The disclosure for this sale can be found here. 2.00% of the stock is currently owned by corporate insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. raised its holdings in Kennametal by 3.2% during the 4th quarter. BlackRock Inc. now owns 9,522,676 shares of the industrial products company’s stock valued at $316,914,000 after buying an additional 293,975 shares during the period. Vanguard Group Inc. raised its holdings in Kennametal by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 7,935,351 shares of the industrial products company’s stock valued at $345,664,000 after buying an additional 32,739 shares during the period. Dimensional Fund Advisors LP raised its holdings in Kennametal by 3.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,611,973 shares of the industrial products company’s stock valued at $95,990,000 after buying an additional 91,385 shares during the period. Victory Capital Management Inc. raised its holdings in Kennametal by 1.4% during the 1st quarter. Victory Capital Management Inc. now owns 2,169,345 shares of the industrial products company’s stock valued at $79,723,000 after buying an additional 29,960 shares during the period. Finally, Bank of New York Mellon Corp raised its holdings in Kennametal by 0.7% during the 4th quarter. Bank of New York Mellon Corp now owns 1,913,432 shares of the industrial products company’s stock valued at $63,678,000 after buying an additional 12,631 shares during the period. Hedge funds and other institutional investors own 99.69% of the company’s stock.

KMT stock opened at $35.73 on Wednesday. Kennametal has a 1-year low of $30.32 and a 1-year high of $45.10. The company has a quick ratio of 1.31, a current ratio of 2.70 and a debt-to-equity ratio of 0.43. The company has a market capitalization of $3.00 billion, a price-to-earnings ratio of 11.93, a price-to-earnings-growth ratio of 1.23 and a beta of 2.09.

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 29th. Stockholders of record on Tuesday, May 14th will be given a dividend of $0.20 per share. The ex-dividend date is Monday, May 13th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.24%. Kennametal’s dividend payout ratio is currently 30.19%.

Kennametal Company Profile

Kennametal Inc develops and applies tungsten carbides, ceramics, super-hard materials, and solutions for use in metal cutting and mission-critical wear applications to combat extreme conditions related with wear fatigue, corrosion, and high temperatures worldwide. The company operates through three segments: Industrial, Widia, and Infrastructure.

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Earnings History and Estimates for Kennametal (NYSE:KMT)

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