Industrial materials and tools company Kennametal (NYSE:KMT) will be announcing earnings results tomorrow before market open. Here’s what to look for.
Kennametal met analysts’ revenue expectations last quarter, reporting revenues of $481.9 million, down 2.1% year on year. It was a mixed quarter for the company, with full-year EPS guidance exceeding analysts’ expectations but 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.
This quarter, analysts are expecting Kennametal’s revenue to decline 1.7% year on year to $487 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.26 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 four times over the last two years.
Looking at Kennametal’s peers in the industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 4.5%, beating analysts’ expectations by 3.9%, and Applied Industrial reported flat revenue, in line with consensus estimates. GE Aerospace traded up 4.5% following the results while Applied Industrial was also up 4.9%.
Read our full analysis of GE Aerospace’s results here and Applied Industrial’s results here.
Investors in the industrial machinery segment have had steady hands going into earnings, with share prices flat over the last month. Kennametal is down 1.7% during the same time and is heading into earnings with an average analyst price target of $26.50 (compared to the current share price of $23.72).
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