Kennametal (NYSE:KMT) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Kennametal (NYSE:KMT) announced its quarterly earnings results on Wednesday. The industrial products company reported $0.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.31 by ($0.01), Briefing.com reports. Kennametal had a net margin of 5.86% and a return on equity of 9.94%. The firm had revenue of $515.80 million for the quarter, compared to the consensus estimate of $518.50 million. During the same period in the prior year, the business earned $0.39 earnings per share. The company’s revenue for the quarter was down 3.8% on a year-over-year basis. Kennametal updated its FY24 guidance to $1.40-1.55 EPS and its FY 2024 guidance to 1.400-1.550 EPS.

Kennametal Trading Up 0.4 %

KMT traded up $0.10 during trading on Friday, reaching $26.13. 226,206 shares of the company’s stock were exchanged, compared to its average volume of 634,221. The company’s fifty day moving average price is $24.39 and its 200-day moving average price is $24.36. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.06 and a current ratio of 2.44. The firm has a market capitalization of $2.07 billion, a PE ratio of 17.35, a P/E/G ratio of 3.29 and a beta of 1.76. Kennametal has a fifty-two week low of $22.08 and a fifty-two week high of $30.60.

Kennametal Dividend Announcement

The firm 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. This represents a $0.80 annualized dividend and a dividend yield of 3.06%. The ex-dividend date of this dividend is Monday, May 13th. Kennametal’s dividend payout ratio is 53.33%.

Insider Transactions at Kennametal

In other Kennametal news, VP John Wayne Witt sold 1,000 shares of the firm’s stock in a transaction dated Thursday, March 7th. The stock was sold at an average price of $25.55, for a total transaction of $25,550.00. Following the transaction, the vice president now owns 1,343 shares in the company, valued at $34,313.65. The sale was disclosed in a document filed with the SEC, which is available through this link. 1.79% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on KMT shares. Barclays raised their price target on Kennametal from $24.00 to $25.00 and gave the company an “equal weight” rating in a report on Thursday. StockNews.com raised shares of Kennametal from a “hold” rating to a “buy” rating in a report on Tuesday, April 30th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Kennametal from $26.00 to $24.00 and set an “underweight” rating for the company in a research note on Thursday, February 8th. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and one has given a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $24.75.

Kennametal declared that its Board of Directors has initiated a share repurchase plan on Wednesday, February 7th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the industrial products company to purchase up to 10.6% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

About Kennametal

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.