What Happened?
Shares of industrial materials and tools company Kennametal (NYSE:KMT) jumped 19.4% in the morning session after the company reported strong third-quarter earnings. Kennametal provided a full-year EPS forecast, which blew past analysts' expectations. EPS also outperformed Wall Street's estimates during the quarter. On the other hand, its EPS forecast for next quarter missed and its revenue fell short of Wall Street's estimates. Overall, this quarter was mixed but the strong full year EPS guidance seems to be lifting shares.
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What The Market Is Telling Us
Kennametal’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. Moves this big are rare for Kennametal and indicate this news significantly impacted the market’s perception of the business.
Kennametal is up 21.5% since the beginning of the year, and at $31.02 per share, has set a new 52-week high. Investors who bought $1,000 worth of Kennametal’s shares 5 years ago would now be looking at an investment worth $929.07.
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