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Kennametal Q1 sales slightly miss estimates

By Reuters News


Overview

  • U.S. industrial tooling firm's fiscal Q1 sales rose 54%, a slight miss versus analyst expectations

  • Company reported record Q1 diluted EPS of $3.48

  • Results driven by favorable raw material pricing and higher Metal Cutting volumes


Outlook

  • Kennametal expects Q2 sales of $785 mln to $815 mln

  • Kennametal sees FY27 sales of $3.33 bln to $3.45 bln

  • Company raises FY27 adjusted EPS outlook to $5.00 to $6.00


Result Drivers

  • RAW MATERIAL PRICING - Co said favorable timing of raw material-related pricing versus costs was a major driver of operating income

  • METAL CUTTING VOLUMES - Higher sales and production volumes in Metal Cutting contributed to results

  • PRODUCTION CREDIT - Infrastructure segment benefited from a $4 mln advanced manufacturing production credit under the Inflation Reduction Act


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Sales

Slight Miss*

$768.19 mln

$770.80 mln (6 Analysts)

Q1 EPS

$3.48

Q1 Net Income

$274.46 mln

Q1 Gross Profit

$513.57 mln

Q1 Operating Income

$379.25 mln

Q1 Pretax Profit

$356.72 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and 4 "sell" or "strong sell"

  • The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

  • Wall Street's median 12-month price target for Kennametal Inc. is $30.96, about 1.4% above its November 3 closing price of $30.53

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Nov 3 - Eaton Q3 sales, EPS beat estimates on strong demand

  • Nov 3 - Regal Rexnord Q3 sales beat estimates on data center demand

  • Nov 3 - AMETEK Q3 sales beat estimates, raises outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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