Industrial materials and tools company Kennametal (NYSE:KMT) will be reporting earnings tomorrow morning. Here’s what to expect.
Kennametal beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $543.3 million, down 1.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ operating margin 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 1.5% year on year to $484.9 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.26 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 Q3 results, giving us a hint as to what we can expect. ESAB’s revenues decreased 1.1% year on year, beating analysts’ expectations by 8.5%, and Snap-on reported flat revenue, topping estimates by 7.8%. ESAB’s stock price was unchanged after the results, and Snap-on’s price followed a similar reaction.
Read our full analysis of ESAB’s results here and Snap-on’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 2.7% during the same time and is heading into earnings with an average analyst price target of $25.50 (compared to the current share price of $25.88).
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