Industrial materials and tools company Kennametal (NYSE:KMT) will be reporting results tomorrow before market hours. Here's what to look for.
Kennametal met analysts' revenue expectations last quarter, reporting revenues of $515.8 million, down 3.8% year on year. It was an ok quarter for the company, with a decent beat of analysts' organic revenue estimates but a miss of analysts' earnings estimates.
Is Kennametal a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Kennametal's revenue to decline 3.2% year on year to $532.7 million, a reversal from the 3.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kennametal has missed Wall Street's revenue estimates four times over the last two years.
Looking at Kennametal's peers in the professional tools and equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Stanley Black & Decker's revenues decreased 3.2% year on year, meeting analysts' expectations, and Middleby reported a revenue decline of 4.7%, in line with consensus estimates. Stanley Black & Decker traded up 9.5% following the results while Middleby was also up 3.7%.
Read our full analysis of Stanley Black & Decker's results here and Middleby's results here.
Investors in the professional tools and equipment segment have had steady hands going into earnings, with share prices flat over the last month. Kennametal is up 4.6% during the same time and is heading into earnings with an average analyst price target of $25.1 (compared to the current share price of $24).
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