Industrial materials and tools company Kennametal (NYSE:KMT) will be reporting results this Wednesday before the bell. Here’s what to look for.
Kennametal beat analysts’ revenue expectations last quarter, reporting revenues of $529.5 million, up 9.8% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Kennametal a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Kennametal’s revenue to grow 16.2% year on year, a reversal from the 5.7% decrease it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Kennametal’s peers in the professional tools and equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Stanley Black & Decker delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 2.7%, and Fortive reported revenues up 7.7%, topping estimates by 2.4%. Stanley Black & Decker’s stock price was unchanged after the resultswhile Fortive was down 4.4%.
Read our full analysis of Stanley Black & Decker’s results here and Fortive’s results here.
There has been positive sentiment among investors in the professional tools and equipment segment, with share prices up 7.6% on average over the last month. Kennametal is up 1.4% during the same time and is heading into earnings with an average analyst price target of $37.57 (compared to the current share price of $36.77).
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