Industrial materials and tools company Kennametal (NYSE: KMT) will be reporting earnings this Wednesday before the bell. Here’s what to expect.
Kennametal missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $516.4 million, down 4.9% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
Is Kennametal a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Kennametal’s revenue to be flat year on year at $477.3 million, improving from the 2.1% 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 six times over the last two years.
Looking at Kennametal’s peers in the professional tools and equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Fortive delivered year-on-year revenue growth of 2.3%, beating analysts’ expectations by 1.8%, and ESAB reported revenues up 8.1%, topping estimates by 4.6%. Fortive traded up 4.2% following the results while ESAB was down 2.5%.
Read our full analysis of Fortive’s results here and ESAB’s results here.
Investors in the professional tools and equipment segment have had steady hands going into earnings, with share prices flat over the last month. Kennametal is up 1.1% 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 $22.18).
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