Overview
Industrial tech firm's fiscal Q2 sales rose 10%, beating analyst expectations
Adjusted EPS for fiscal Q2 beat analyst expectations
Growth driven by tungsten pricing and market improvements
Outlook
Kennametal expects Q3 sales between $545 mln and $565 mln
Company anticipates full-year sales of $2.190 bln to $2.250 bln
Kennametal projects full-year adjusted EPS of $2.05 to $2.45
Result Drivers
TUNGSTEN PRICING - Sales growth driven by volume increase due to buy-ahead in response to tungsten pricing environment
PRICING AND TARIFFS - Operating income boosted by favorable pricing timing and tariff surcharges in Metal Cutting segment
RESTRUCTURING SAVINGS - Incremental restructuring savings contributed to operating income increase
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $529.53 mln | $522.95 mln (6 Analysts) |
Q2 Adjusted EPS | Beat | $0.47 | $0.38 (8 Analysts) |
Q2 EPS | $0.44 | ||
Q2 Net Income | $35.20 mln | ||
Q2 Gross Profit | $173.87 mln | ||
Q2 Operating Income | $52.66 mln | ||
Q2 Pretax Profit | $48.67 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy."
Wall Street's median 12-month price target for Kennametal Inc is $28.00, about 21.7% below its February 3 closing price of $35.76
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nPn4wfXZxa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)