We have issued an updated research report on Kennametal Inc. (KMT - Free Report) on Apr 12.
The industrial tool maker, with a market capitalization of $3.3 billion, currently carries a Zacks Rank #3 (Hold).
Certain growth drivers and headwinds that might influence Kennametal have been discussed below.
Factors Favoring Kennametal
Share Price Performance, Impressive Earnings Outlook: Kennametal impressed shareholders with an earnings beat of 2.90% in second-quarter fiscal 2019 (ended Dec 30, 2018). This was the third consecutive quarter of an earnings beat. Average earnings surprise for the last four quarters was a positive 3.15%.
In the past three months, the company’s shares have increased 13%, above the industry’s growth of 10.9%.
The company anticipates gaining from initiatives (including growth, modernization and simplification) and strengthening end-markets. For fiscal 2019 (ending June 2019), adjusted earnings are anticipated to be $2.90-$3.20 per share, above $2.65 recorded in fiscal 2018 (ended Jun 2018).
Currently, the Zacks Consensus Estimate for earnings is pegged at $3.13 for fiscal 2019 and $3.49 for fiscal 2020, reflecting year-over-year growth of 18.1% and 11.4%, respectively.
Kennametal Inc. Price and Consensus