What Happened?
Shares of industrial materials and tools company Kennametal (NYSE:KMT) fell 6.4% in the morning session after the company reported weak fourth-quarter results. Its full-year EPS guidance missed significantly, and its revenue guidance for the next quarter also fell short of Wall Street's estimates. Management attributed the weaker outlook to deteriorating market conditions, particularly in EMEA. Overall, this was a softer quarter.
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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. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 19.4% on the news that 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.
Kennametal is down 6.6% since the beginning of the year, and at $22.16 per share, it is trading 29% below its 52-week high of $31.23 from November 2024. Investors who bought $1,000 worth of Kennametal’s shares 5 years ago would now be looking at an investment worth $715.30.
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