Kennametal Earnings: Here’s Why Shares are Up Now

Kennametal Inc. (NYSE:KMT) delivered a profit and missed Wall Street’s expectations, AND 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 3.9%.

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Kennametal Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 31.63% to $0.67 in the quarter versus EPS of $0.98 in the year-earlier quarter.

Revenue: Decreased 5.89% to $655.36 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kennametal Inc. reported adjusted EPS income of $0.67 per share. By that measure, the company missed the mean analyst estimate of $0.71. It missed the average revenue estimate of $676.66 million.

Quoting Management: “In the March quarter, we again delivered double-digit margin performance and generated strong cash flows, despite another difficult period for industrial and infrastructure activity globally” said Kennametal Chairman, President and Chief Executive Officer Carlos Cardoso.

Key Stats (on next page)…

Revenue increased 3.51% from $633.14 million in the previous quarter. EPS increased 28.85% from $0.52 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 $1.03 to a profit $0.89. For the current year, the average estimate has moved down from a profit of $3.02 to a profit of $2.69 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]