Shares of Kennametal (KMT) surged 6.96% in pre-market trading on Wednesday following the company's impressive third-quarter earnings report and optimistic full-year guidance. The industrial materials and tooling manufacturer demonstrated resilience in a challenging market environment, significantly outperforming earnings expectations.
Kennametal reported quarterly earnings of $0.47 per share, nearly doubling the analyst consensus estimate of $0.24 and marking a 56.67% increase from the same period last year. While the company's quarterly sales of $486.40 million slightly missed the analyst estimate of $490.42 million, investors appeared to focus on the strong bottom-line performance and future outlook.
Adding to the positive sentiment, Kennametal provided an encouraging forecast for fiscal year 2025. The company expects full-year sales to range between $1.970 billion and $1.990 billion, surpassing the FactSet estimate of $1.97 billion. Moreover, the projected adjusted earnings per share of $1.30 to $1.45 for FY2025 significantly exceeded analyst expectations of $1.13, further fueling investor optimism and contributing to the stock's pre-market rally.
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