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 earnings per share for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.01), Briefing.com reports. The company had revenue of $515.80 million for the quarter, compared to analyst estimates of $518.50 million. Kennametal had a return on equity of 9.94% and a net margin of 5.86%. The business’s revenue was down 3.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.39 earnings per share. Kennametal updated its FY24 guidance to $1.40-1.55 EPS and its FY 2024 guidance to 1.400-1.550 EPS.

Kennametal Price Performance

Shares of Kennametal stock traded up $0.69 during trading on Thursday, hitting $26.04. The stock had a trading volume of 642,688 shares, compared to its average volume of 632,281. The business has a fifty day moving average of $24.38 and a two-hundred day moving average of $24.35. The firm has a market cap of $2.06 billion, a P/E ratio of 17.33, a PEG ratio of 3.29 and a beta of 1.76. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.44 and a quick ratio of 1.06. Kennametal has a fifty-two week low of $22.08 and a fifty-two week high of $30.60.

Kennametal Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, May 28th. Stockholders of record on Tuesday, May 14th will be given a dividend of $0.20 per share. The ex-dividend date is Monday, May 13th. This represents a $0.80 annualized dividend and a dividend yield of 3.07%. Kennametal’s dividend payout ratio is currently 53.33%.

Kennametal announced that its Board of Directors has authorized a share repurchase program on Wednesday, February 7th that authorizes the company to repurchase $200.00 million in shares. This repurchase authorization authorizes the industrial products company to repurchase up to 10.6% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In other news, VP John Wayne Witt sold 1,000 shares of the company’s 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 sale, 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 is available at the SEC website. Insiders own 1.79% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have issued reports on KMT shares. JPMorgan Chase & Co. cut their price target 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. Barclays boosted their price objective on shares of Kennametal from $24.00 to $25.00 and gave the company an “equal weight” rating in a research note on Thursday. Finally, StockNews.com upgraded Kennametal from a “hold” rating to a “buy” rating in a research note on Tuesday, April 30th. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $24.75.

Kennametal Company Profile

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.