Industrial materials and tools company Kennametal (NYSE: KMT) will be announcing earnings results this Wednesday morning. Here’s what to look for.
Kennametal beat analysts’ revenue expectations last quarter, reporting revenues of $736.6 million, up 42.6% year on year. It was a stunning quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Kennametal a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Kennametal’s revenue to grow 55.7% year on year, improving from the 3.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Kennametal has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Kennametal’s peers in the professional tools and equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Fortive delivered year-on-year revenue growth of 7.8%, beating analysts’ expectations by 3.3%, and Hillman reported revenues up 7.7%, falling short of estimates by 0.8%. Fortive traded up 6.8% following the results.
Read our full analysis of Fortive’s results here and Hillman’s results here.
Investors in the professional tools and equipment segment have had steady hands going into earnings, with share prices flat over the last month. Kennametal is down 6.2% during the same time and is heading into earnings with an average analyst price target of $31.43 (compared to the current share price of $30.81).
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