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

Kennametal (NYSE:KMT) posted 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. Kennametal had a return on equity of 9.94% and a net margin of 5.86%. The company had revenue of $515.80 million for the quarter, compared to analysts’ expectations of $518.50 million. During the same quarter in the prior year, the business posted $0.39 EPS. The company’s revenue for the quarter was down 3.8% compared to the same quarter last year. 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 $0.61 during trading hours on Thursday, hitting $25.96. 515,167 shares of the company traded hands, compared to its average volume of 631,083. The company has a current ratio of 2.44, a quick ratio of 1.06 and a debt-to-equity ratio of 0.45. The firm has a 50-day moving average of $24.38 and a 200 day moving average of $24.35. Kennametal has a twelve month low of $22.08 and a twelve month high of $30.60. The stock has a market capitalization of $2.06 billion, a price-to-earnings ratio of 17.33, a P/E/G ratio of 3.29 and a beta of 1.76.

Kennametal Dividend Announcement

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

Analyst Ratings Changes

A number of analysts recently weighed in on KMT shares. StockNews.com upgraded Kennametal from a “hold” rating to a “buy” rating in a report on Tuesday, April 30th. Barclays boosted their price target on Kennametal from $24.00 to $25.00 and gave the stock an “equal weight” rating in a research note on Thursday. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Kennametal from $26.00 to $24.00 and set an “underweight” rating on the stock in a research note on Thursday, February 8th. Two research analysts have rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $24.75.

Insider Activity at Kennametal

In other Kennametal news, VP John Wayne Witt sold 1,000 shares of Kennametal stock in a transaction on Thursday, March 7th. The stock was sold at an average price of $25.55, for a total transaction of $25,550.00. Following the completion of the transaction, the vice president now directly owns 1,343 shares of the company’s stock, valued at $34,313.65. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.79% of the stock is currently owned by corporate insiders.

Kennametal declared that its Board of Directors has initiated a share buyback program on Wednesday, February 7th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the industrial products company to buy up to 10.6% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its stock is undervalued.

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.