Kennametal (NYSE:KMT) Issues FY 2024 Earnings Guidance

Kennametal (NYSE:KMT) updated its FY 2024 earnings guidance on Wednesday. The company provided EPS guidance of 1.400-1.550 for the period, compared to the consensus EPS estimate of 1.480. The company issued revenue guidance of $2.0 billion-$2.1 billion, compared to the consensus revenue estimate of $2.1 billion. Kennametal also updated its FY24 guidance to $1.40-1.55 EPS.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on KMT. JPMorgan Chase & Co. dropped their price target on Kennametal from $26.00 to $24.00 and set an underweight rating on the stock in a research note on Thursday, February 8th. StockNews.com raised Kennametal from a hold rating to a buy rating in a report on Tuesday, April 30th. Finally, Barclays dropped their target price on Kennametal from $25.00 to $24.00 and set an equal weight rating for the company in a report on Tuesday, April 2nd. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and one has given a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of Hold and an average target price of $24.58.

Kennametal Price Performance

Shares of NYSE KMT traded up $0.06 during mid-day trading on Wednesday, hitting $24.62. 458,348 shares of the stock traded hands, compared to its average volume of 625,485. Kennametal has a twelve month low of $22.08 and a twelve month high of $30.60. The firm has a 50 day simple moving average of $24.37 and a two-hundred day simple moving average of $24.34. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.44 and a quick ratio of 1.06. The company has a market cap of $1.95 billion, a PE ratio of 16.41, a price-to-earnings-growth ratio of 3.29 and a beta of 1.76.

Kennametal (NYSE:KMT) last announced its quarterly earnings results on Wednesday, February 7th. The industrial products company reported $0.30 EPS for the quarter, beating analysts’ consensus estimates of $0.25 by $0.05. The firm had revenue of $495.30 million for the quarter, compared to analyst estimates of $498.99 million. Kennametal had a return on equity of 9.94% and a net margin of 5.86%. The business’s revenue for the quarter was down .4% on a year-over-year basis. During the same period last year, the firm posted $0.27 earnings per share. As a group, equities research analysts forecast that Kennametal will post 1.49 EPS for the current fiscal year.

Kennametal Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, May 28th. Shareholders of record on Tuesday, May 14th will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 3.25%. The ex-dividend date is Monday, May 13th. Kennametal’s payout ratio is 53.33%.

Kennametal declared that its Board of Directors has approved a share repurchase program on Wednesday, February 7th that allows the company to buyback $200.00 million in outstanding shares. This buyback authorization allows the industrial products company to reacquire up to 10.6% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other news, VP John Wayne Witt sold 1,000 shares of the company’s stock in a transaction on Thursday, March 7th. The shares were sold at an average price of $25.55, for a total value of $25,550.00. Following the sale, the vice president now directly owns 1,343 shares of the company’s stock, valued at approximately $34,313.65. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 1.79% of the stock is currently owned by insiders.

About Kennametal

Kennametal Inc engages in development and application of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. The company operates through two segments, Metal Cutting and Infrastructure.