Kennametal (NYSE:KMT) Updates FY 2024 Earnings Guidance

Kennametal (NYSE:KMT) updated its FY 2024 earnings guidance on Wednesday morning. The company provided earnings per share 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.

Kennametal Stock Up 0.2 %

NYSE KMT traded up $0.06 during trading on Wednesday, hitting $24.62. The company’s stock had a trading volume of 458,348 shares, compared to its average volume of 625,485. Kennametal has a fifty-two week low of $22.08 and a fifty-two week high of $30.60. The company has a market cap of $1.95 billion, a PE ratio of 16.41, a P/E/G ratio of 3.29 and a beta of 1.76. 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 business’s 50 day simple moving average is $24.37 and its 200-day simple moving average is $24.34.

Kennametal (NYSE:KMT) last released its earnings results on Wednesday, February 7th. The industrial products company reported $0.30 EPS for the quarter, topping analysts’ consensus estimates of $0.25 by $0.05. Kennametal had a net margin of 5.86% and a return on equity of 9.94%. The company had revenue of $495.30 million during the quarter, compared to analysts’ expectations of $498.99 million. During the same period last year, the business earned $0.27 EPS. Kennametal’s revenue for the quarter was down .4% on a year-over-year basis. On average, equities analysts anticipate that Kennametal will post 1.49 EPS for the current fiscal year.

Kennametal Announces Dividend

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

Kennametal declared that its board has initiated a stock repurchase plan on Wednesday, February 7th that permits the company to repurchase $200.00 million in outstanding shares. This repurchase authorization permits the industrial products company to purchase up to 10.6% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of analysts have commented on the company. Barclays lowered their price target on Kennametal from $25.00 to $24.00 and set an equal weight rating for the company in a research report on Tuesday, April 2nd. StockNews.com raised Kennametal from a hold rating to a buy rating in a report on Tuesday, April 30th. Finally, JPMorgan Chase & Co. cut their price target on shares of Kennametal from $26.00 to $24.00 and set an underweight rating on the stock in a report on Thursday, February 8th. Two analysts have rated the stock with a sell rating, two have issued a hold rating and one has assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of Hold and a consensus target price of $24.58.

Insider Buying and Selling

In other news, VP John Wayne Witt sold 1,000 shares of Kennametal stock in a transaction that occurred on Thursday, March 7th. The stock was 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 $34,313.65. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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.