We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Kennametal Inc. (KMT - Free Report) reported first-quarter fiscal 2025 (ended Sept. 30, 2024) adjusted earnings of 29 cents per share, which beat the Zacks Consensus Estimate of 25 cents. The bottom line decreased 29.3% from the year-ago figure.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
KMT’s Revenue Details
Kennametal’s revenues were $481.9 million, which decreased 2% from the year-ago quarter’s figure. Organic sales declined 2% year over year. Business days had a positive impact of 1%. Currency exchange negatively affected sales by 1%.
KMT’s revenues beat the Zacks Consensus Estimate of $581 million.
On a geographical basis, revenues from American operations decreased 2% year over year to $237.7 million, whereas sales from Europe, the Middle East and Africa region were $145.9 million, down 1% from the year-ago quarter’s reading. Sales from the Asia Pacific belt increased 2% to $98.3 million.
Kennametal reports results under two business segments, namely Metal Cutting and Infrastructure. Its segmental performance for the fiscal first quarter is briefly discussed below:
The Metal Cutting segment’s revenues of $297 million decreased 4% year over year. Organic revenues declined 4%. Forex woes had an unfavorable impact of 2%, while business days had a positive impact of 2%. The Zacks Consensus Estimate for Metal Cutting’s revenues was pegged at $301 million.
The Infrastructure segment’s revenues totaled $185 million, up 0.4% year over year. Organic revenues increased 1%, while business days had a negative impact of 1% year over year. The consensus estimate for Infrastructure’s revenues was pegged at $180 million.
Kennametal’s cost of goods sold increased 0.4% year over year to $330.9 million. The gross profit decreased 7% year over year to $151 million, while the margin decreased 180 basis points (bps) to 31.3%. Operating expenses were $112 million, flat year over year.
The operating income decreased 25% year over year to $37 million. Operating margin decreased 130 bps year over year to 7.6%. Lower sales and production volumes within the Metal Cutting segment, higher wages and general inflation and certain manufacturing costs within the Infrastructure segment ailed the results.
Interest expenses were $6.3 million, down 12% from the year-ago quarter’s figure. The adjusted effective tax rate was 4.4%.
Kennametal’s Balance Sheet and Cash Flow
While exiting the fiscal first quarter, Kennametal’s cash and cash equivalents were $119.6 million compared with $128 million in fourth-quarter fiscal 2024. Long-term debt was $596.2 million compared with the $596 million in the year-ago quarter.
In the first three months of fiscal 2025, Kennametal generated net cash of $45.7 million in operating activities compared with $25.7 million in the previous fiscal year’s quarter. Capital invested in purchasing property, plant and equipment (net of the amount received on disposals) was $24.7 million, down 22.2% from $31.8 million in the prior fiscal year. Free operating cash flow was $21.1 million against $3 million cash out flow in the previous fiscal year’s period.
KMT paid a dividend of $15.6 million and repurchased shares worth $15 million.
KMT’s Dividend Update
Kennametal announced that its board of directors approved a quarterly cash dividend of 20 cents per share to its shareholders of record as of Nov. 12, 2024. The disbursement will be made on Nov. 26.
Kennametal’s Guidance
For fiscal 2025 (ending June 2025), the company anticipates sales to be in the range of $2.0-$2.1 billion. Adjusted earnings per share are anticipated to be in the range of $1.30-$1.70. Free operating cash flow is expected to be more than 125% of net income (adjusted).
Capital spending is expected to be approximately $110 million.
KMT’s Zacks Rank
The company currently carries a Zacks Rank #5 (Strong Sell).
Avery Dennison Corporation (AVY - Free Report) delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.
Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.
John Bean Technologies Corporation reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.
A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.
Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Kennametal's Q1 Earnings Surpass Estimates, Revenues Decline Y/Y
Kennametal Inc. (KMT - Free Report) reported first-quarter fiscal 2025 (ended Sept. 30, 2024) adjusted earnings of 29 cents per share, which beat the Zacks Consensus Estimate of 25 cents. The bottom line decreased 29.3% from the year-ago figure.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
KMT’s Revenue Details
Kennametal’s revenues were $481.9 million, which decreased 2% from the year-ago quarter’s figure. Organic sales declined 2% year over year. Business days had a positive impact of 1%. Currency exchange negatively affected sales by 1%.
KMT’s revenues beat the Zacks Consensus Estimate of $581 million.
On a geographical basis, revenues from American operations decreased 2% year over year to $237.7 million, whereas sales from Europe, the Middle East and Africa region were $145.9 million, down 1% from the year-ago quarter’s reading. Sales from the Asia Pacific belt increased 2% to $98.3 million.
Kennametal reports results under two business segments, namely Metal Cutting and Infrastructure. Its segmental performance for the fiscal first quarter is briefly discussed below:
The Metal Cutting segment’s revenues of $297 million decreased 4% year over year. Organic revenues declined 4%. Forex woes had an unfavorable impact of 2%, while business days had a positive impact of 2%. The Zacks Consensus Estimate for Metal Cutting’s revenues was pegged at $301 million.
The Infrastructure segment’s revenues totaled $185 million, up 0.4% year over year. Organic revenues increased 1%, while business days had a negative impact of 1% year over year. The consensus estimate for Infrastructure’s revenues was pegged at $180 million.
Kennametal Inc. Price, Consensus and EPS Surprise
Kennametal Inc. price-consensus-eps-surprise-chart | Kennametal Inc. Quote
KMT’s Margin Profile
Kennametal’s cost of goods sold increased 0.4% year over year to $330.9 million. The gross profit decreased 7% year over year to $151 million, while the margin decreased 180 basis points (bps) to 31.3%. Operating expenses were $112 million, flat year over year.
The operating income decreased 25% year over year to $37 million. Operating margin decreased 130 bps year over year to 7.6%. Lower sales and production volumes within the Metal Cutting segment, higher wages and general inflation and certain manufacturing costs within the Infrastructure segment ailed the results.
Interest expenses were $6.3 million, down 12% from the year-ago quarter’s figure. The adjusted effective tax rate was 4.4%.
Kennametal’s Balance Sheet and Cash Flow
While exiting the fiscal first quarter, Kennametal’s cash and cash equivalents were $119.6 million compared with $128 million in fourth-quarter fiscal 2024. Long-term debt was $596.2 million compared with the $596 million in the year-ago quarter.
In the first three months of fiscal 2025, Kennametal generated net cash of $45.7 million in operating activities compared with $25.7 million in the previous fiscal year’s quarter. Capital invested in purchasing property, plant and equipment (net of the amount received on disposals) was $24.7 million, down 22.2% from $31.8 million in the prior fiscal year. Free operating cash flow was $21.1 million against $3 million cash out flow in the previous fiscal year’s period.
KMT paid a dividend of $15.6 million and repurchased shares worth $15 million.
KMT’s Dividend Update
Kennametal announced that its board of directors approved a quarterly cash dividend of 20 cents per share to its shareholders of record as of Nov. 12, 2024. The disbursement will be made on Nov. 26.
Kennametal’s Guidance
For fiscal 2025 (ending June 2025), the company anticipates sales to be in the range of $2.0-$2.1 billion. Adjusted earnings per share are anticipated to be in the range of $1.30-$1.70. Free operating cash flow is expected to be more than 125% of net income (adjusted).
Capital spending is expected to be approximately $110 million.
KMT’s Zacks Rank
The company currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Companies
Avery Dennison Corporation (AVY - Free Report) delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.
Total revenues grew 4.1% year over year to $2.18 billion and missed the Zacks Consensus Estimate of $2.2 billion.
John Bean Technologies Corporation reported adjusted earnings of $1.50 per share in third-quarter 2024, 35.1% higher than the prior-year quarter. The figure beat the consensus estimate of $1.41.
Revenues of $454 million increased 12.4% from the year-ago quarter. The top line surpassed the consensus estimate of $445 million.
A. O. Smith Corporation’s (AOS - Free Report) third-quarter adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.
Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.