Kennametal Set to Announce Q2 Earnings on February 4th
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy KMT?
Source: seekingalpha
- Earnings Announcement: Kennametal is set to release its Q2 earnings report on February 4th before market open, with consensus EPS estimate at $0.38, reflecting a significant 52% year-over-year increase, indicating improved profitability.
- Revenue Growth Expectations: The anticipated revenue for Q2 is $522.92 million, representing an 8.5% year-over-year growth, showcasing the company's positive performance amid recovering market demand and increased product sales.
- Performance Beat Record: Over the past two years, Kennametal has beaten EPS estimates 75% of the time, although it has only surpassed revenue estimates 13% of the time, indicating strong stability in earnings but a need for improvement in revenue growth.
- Upward Revision Trend: In the last three months, EPS estimates have seen 8 upward revisions with no downward adjustments, and revenue estimates have experienced 6 upward revisions, reflecting analysts' growing confidence in the company's future performance.
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Analyst Views on KMT
Wall Street analysts forecast KMT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMT is 29.83 USD with a low forecast of 25.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
1 Buy
3 Hold
2 Sell
Hold
Current: 38.280
Low
25.00
Averages
29.83
High
40.00
Current: 38.280
Low
25.00
Averages
29.83
High
40.00
About KMT
Kennametal Inc. is an industrial technology company that delivers productivity to customers through materials science, tooling and wear-resistant solutions. The Company helps customers in the aerospace & defense, earthworks, energy, general engineering and transportation end markets. The Company's core expertise includes the development and application of tungsten carbides, ceramics, super-hard materials and solutions used in metal cutting and extreme wear applications to keep customers up and running longer against conditions such as corrosion and high temperatures. The Company operates through two segments: Metal Cutting and Infrastructure. The Metal Cutting segment develops and manufactures high performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions. The Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and advanced metallurgical powders.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kennametal Q2 Earnings Beat Expectations, Shares Surge 14.4%
- Earnings Surprise: Kennametal reported a 10% year-over-year sales growth in Q2, surpassing management's expectations, indicating that the sales increase was driven by higher volumes and customers buying ahead of price hikes amid rising tungsten prices.
- Positive Market Reaction: The company's shares surged by 14.4% by 11 a.m., reflecting strong investor confidence in its robust performance, with the current stock price at $38.35 and a market cap of $2.7 billion.
- Optimistic Industry Outlook: Despite challenges in the broader industrial sector, Kennametal's aerospace and energy markets are expected to improve, with aircraft production projected to rise in 2026 and data centers driving electricity demand for energy growth opportunities.
- Supply Chain Dynamics: Management highlighted a rebound in the ISM Purchasing Managers Index, suggesting growth in the U.S. manufacturing sector after 12 months of decline, indicating that while a manufacturing inflection point may not be confirmed, conditions are not worsening.
See More
Kennametal Surpasses Earnings Expectations as Soaring Tungsten Prices Drive Demand
- Strong Sales Growth: Kennametal achieved a 10% year-over-year sales growth in the recent quarter, surpassing management's expectations, indicating a proactive purchasing behavior from customers ahead of rising tungsten prices, which enhances the company's competitive edge in the metal cutting tools market.
- Robust Earnings Performance: The company reported sales and earnings that exceeded expectations, with shares rising as much as 14.4% in early trading, reflecting a positive market reaction to its performance, showcasing resilience despite the overall weakness in the industrial sector.
- Optimistic Market Outlook: The aerospace and defense markets are expected to improve in 2026, supported by a better outlook for aircraft production, while the company's energy exposure offers growth opportunities as data centers continue to drive electricity demand, indicating future growth potential.
- Manufacturing Recovery Signals: Management highlighted the recent uptick in the Institute for Supply Management's (ISM) Purchasing Managers Index, which suggests a recovery in the U.S. manufacturing sector after 12 months of declines, providing investors with renewed confidence despite Kennametal's earnings not confirming a definitive inflection point.
See More
Kennametal Inc. Q2 2026 Earnings Call Insights
- Significant Sales Growth: Kennametal reported a 10% year-over-year sales increase in Q2, with organic growth also at 10%, indicating substantial progress in strategic growth initiatives within Infrastructure and Metal Cutting, thereby enhancing market competitiveness.
- Improved Profitability: Adjusted earnings per share rose to $0.47 from $0.25 in the prior year, reflecting the company's successful pricing strategies in response to rising tungsten costs, which bolstered profitability despite market challenges.
- Optimistic Outlook: The company expects FY '26 sales between $2.19 billion and $2.25 billion, with adjusted EPS projected at $2.05 to $2.45, demonstrating management's confidence in future market demand and pricing power amid ongoing economic uncertainties.
- Cash Flow Management: Although free operating cash flow decreased to $38 million year-over-year due to increased working capital driven by higher tungsten prices, the company returned $15 million to shareholders via dividends, showcasing robust financial management capabilities.
See More
Cirrus Logic Reports Strong Q3 Earnings, Shares Surge
- Earnings Beat: Cirrus Logic reported third-quarter earnings of $2.97 per share, surpassing the analyst consensus estimate of $2.44 per share, indicating a significant improvement in profitability and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $580.620 million, exceeding the analyst consensus estimate of $533.890 million, demonstrating strong market demand and driving sustained performance growth.
- Stock Surge: Following the positive earnings report, Cirrus Logic's shares jumped 7.6% to $134.10 on Wednesday, reflecting market optimism regarding the company's future growth potential.
- Optimistic Guidance: Cirrus Logic provided fourth-quarter sales guidance that is expected to exceed market estimates, further solidifying its competitive position in the semiconductor industry.
See More
Kennametal Declares Quarterly Dividend of $0.20 per Share
- Quarterly Dividend Announcement: Kennametal has declared a quarterly dividend of $0.20 per share, consistent with previous distributions, demonstrating the company's ongoing commitment to stable cash flow and shareholder returns.
- Dividend Yield: The forward yield of 2.24% reflects the company's attractiveness in the current market environment, potentially appealing to investors seeking stable income.
- Shareholder Record Date: The dividend will be payable on February 24, with a record date of February 10 and an ex-dividend date also on February 10, ensuring eligible shareholders receive their payouts promptly.
- Market Outlook: While the company's fundamentals are improving, analysts advise caution until a bullish trend is established, indicating a wait-and-see approach regarding Kennametal's future performance.
See More
Kennametal Q2 Earnings Exceed Expectations
- Strong Earnings Performance: Kennametal reported a Q2 non-GAAP EPS of $0.47, beating expectations by $0.09, indicating a sustained improvement in profitability that boosts investor confidence.
- Significant Revenue Growth: The company achieved $530 million in revenue for Q2, a 10% year-over-year increase that surpassed market expectations by $7.08 million, demonstrating robust market demand and positive business momentum.
- Optimistic Future Outlook: For Q3 of fiscal 2026, sales are expected to range between $545 million and $565 million, with adjusted EPS projected at $0.50 to $0.60, both exceeding consensus estimates, reflecting the company's confidence in future growth.
- Annual Performance Expectations Raised: Kennametal anticipates full-year sales between $2.19 billion and $2.25 billion, with adjusted EPS expected to be between $2.05 and $2.45, both above market expectations, showcasing its long-term growth potential.
See More
Kennametal Q2 Earnings Beat Expectations, Shares Surge 14.4%
- Earnings Surprise: Kennametal reported a 10% year-over-year sales growth in Q2, surpassing management's expectations, indicating that the sales increase was driven by higher volumes and customers buying ahead of price hikes amid rising tungsten prices.
- Positive Market Reaction: The company's shares surged by 14.4% by 11 a.m., reflecting strong investor confidence in its robust performance, with the current stock price at $38.35 and a market cap of $2.7 billion.
- Optimistic Industry Outlook: Despite challenges in the broader industrial sector, Kennametal's aerospace and energy markets are expected to improve, with aircraft production projected to rise in 2026 and data centers driving electricity demand for energy growth opportunities.
- Supply Chain Dynamics: Management highlighted a rebound in the ISM Purchasing Managers Index, suggesting growth in the U.S. manufacturing sector after 12 months of decline, indicating that while a manufacturing inflection point may not be confirmed, conditions are not worsening.
See More
Kennametal Surpasses Earnings Expectations as Soaring Tungsten Prices Drive Demand
- Strong Sales Growth: Kennametal achieved a 10% year-over-year sales growth in the recent quarter, surpassing management's expectations, indicating a proactive purchasing behavior from customers ahead of rising tungsten prices, which enhances the company's competitive edge in the metal cutting tools market.
- Robust Earnings Performance: The company reported sales and earnings that exceeded expectations, with shares rising as much as 14.4% in early trading, reflecting a positive market reaction to its performance, showcasing resilience despite the overall weakness in the industrial sector.
- Optimistic Market Outlook: The aerospace and defense markets are expected to improve in 2026, supported by a better outlook for aircraft production, while the company's energy exposure offers growth opportunities as data centers continue to drive electricity demand, indicating future growth potential.
- Manufacturing Recovery Signals: Management highlighted the recent uptick in the Institute for Supply Management's (ISM) Purchasing Managers Index, which suggests a recovery in the U.S. manufacturing sector after 12 months of declines, providing investors with renewed confidence despite Kennametal's earnings not confirming a definitive inflection point.
See More
Kennametal Inc. Q2 2026 Earnings Call Insights
- Significant Sales Growth: Kennametal reported a 10% year-over-year sales increase in Q2, with organic growth also at 10%, indicating substantial progress in strategic growth initiatives within Infrastructure and Metal Cutting, thereby enhancing market competitiveness.
- Improved Profitability: Adjusted earnings per share rose to $0.47 from $0.25 in the prior year, reflecting the company's successful pricing strategies in response to rising tungsten costs, which bolstered profitability despite market challenges.
- Optimistic Outlook: The company expects FY '26 sales between $2.19 billion and $2.25 billion, with adjusted EPS projected at $2.05 to $2.45, demonstrating management's confidence in future market demand and pricing power amid ongoing economic uncertainties.
- Cash Flow Management: Although free operating cash flow decreased to $38 million year-over-year due to increased working capital driven by higher tungsten prices, the company returned $15 million to shareholders via dividends, showcasing robust financial management capabilities.
See More
Cirrus Logic Reports Strong Q3 Earnings, Shares Surge
- Earnings Beat: Cirrus Logic reported third-quarter earnings of $2.97 per share, surpassing the analyst consensus estimate of $2.44 per share, indicating a significant improvement in profitability and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $580.620 million, exceeding the analyst consensus estimate of $533.890 million, demonstrating strong market demand and driving sustained performance growth.
- Stock Surge: Following the positive earnings report, Cirrus Logic's shares jumped 7.6% to $134.10 on Wednesday, reflecting market optimism regarding the company's future growth potential.
- Optimistic Guidance: Cirrus Logic provided fourth-quarter sales guidance that is expected to exceed market estimates, further solidifying its competitive position in the semiconductor industry.
See More
Kennametal Declares Quarterly Dividend of $0.20 per Share
- Quarterly Dividend Announcement: Kennametal has declared a quarterly dividend of $0.20 per share, consistent with previous distributions, demonstrating the company's ongoing commitment to stable cash flow and shareholder returns.
- Dividend Yield: The forward yield of 2.24% reflects the company's attractiveness in the current market environment, potentially appealing to investors seeking stable income.
- Shareholder Record Date: The dividend will be payable on February 24, with a record date of February 10 and an ex-dividend date also on February 10, ensuring eligible shareholders receive their payouts promptly.
- Market Outlook: While the company's fundamentals are improving, analysts advise caution until a bullish trend is established, indicating a wait-and-see approach regarding Kennametal's future performance.
See More
Kennametal Q2 Earnings Exceed Expectations
- Strong Earnings Performance: Kennametal reported a Q2 non-GAAP EPS of $0.47, beating expectations by $0.09, indicating a sustained improvement in profitability that boosts investor confidence.
- Significant Revenue Growth: The company achieved $530 million in revenue for Q2, a 10% year-over-year increase that surpassed market expectations by $7.08 million, demonstrating robust market demand and positive business momentum.
- Optimistic Future Outlook: For Q3 of fiscal 2026, sales are expected to range between $545 million and $565 million, with adjusted EPS projected at $0.50 to $0.60, both exceeding consensus estimates, reflecting the company's confidence in future growth.
- Annual Performance Expectations Raised: Kennametal anticipates full-year sales between $2.19 billion and $2.25 billion, with adjusted EPS expected to be between $2.05 and $2.45, both above market expectations, showcasing its long-term growth potential.
See More
