Kennametal Earnings: Here’s Why Investors are Buying Shares Now
Kennametal Inc. (NYSE:KMT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.6%.
Kennametal Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 29.63% to $0.76 in the quarter versus EPS of $1.08 in the year-earlier quarter.
Revenue: Decreased 9.17% to $671.41 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Kennametal Inc. reported adjusted EPS income of $0.76 per share. By that measure, the company beat the mean analyst estimate of $0.74. It missed the average revenue estimate of $679.52 million.
Quoting Management: “In the June quarter—and for every quarter during fiscal 2013—Kennametal delivered double-digit profitability despite market challenges. We demonstrated greater agility in this cycle and elevated our financial performance,” said Kennametal Chairman, President and Chief Executive Officer Carlos Cardoso.
Key Stats (on next page)…
Revenue increased 2.45% from $655.36 million in the previous quarter. EPS increased 13.43% from $0.67 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.64 to a profit $0.61. For the current year, the average estimate has moved down from a profit of $2.51 to a profit of $2.50 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)