Kennametal (NYSE:KMT – Get Free Report) issued an update on its first quarter 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 2.500-2.800 for the period, compared to the consensus estimate of 1.090. The company issued revenue guidance of $745.0 million-$775.0 million, compared to the consensus revenue estimate of $675.0 million. Kennametal also updated its FY 2027 guidance to 4.150-5.150 EPS.
Wall Street Analyst Weigh In
KMT has been the topic of several analyst reports. Jefferies Financial Group cut shares of Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price objective on the stock. in a research note on Thursday, May 7th. Barclays cut Kennametal from an “equal weight” rating to an “underweight” rating and decreased their price target for the company from $40.00 to $33.00 in a research note on Wednesday, May 27th. Weiss Ratings cut Kennametal from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, May 20th. Zacks Research lowered shares of Kennametal from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 14th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Kennametal from $40.00 to $34.00 and set an “underweight” rating on the stock in a report on Monday, July 13th. Six analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $35.79.
Kennametal Stock Performance
Kennametal (NYSE:KMT – Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The industrial products company reported $2.96 earnings per share for the quarter, topping the consensus estimate of $2.31 by $0.65. Kennametal had a return on equity of 11.02% and a net margin of 6.41%.The business had revenue of $736.61 million for the quarter, compared to analysts’ expectations of $725.74 million. During the same quarter in the previous year, the firm earned $0.34 earnings per share. The business’s revenue was up 42.6% on a year-over-year basis. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. On average, analysts forecast that Kennametal will post 3.23 earnings per share for the current fiscal year.
Kennametal Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 11th will be given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Tuesday, August 11th. Kennametal’s dividend payout ratio is currently 45.20%.
Insider Transactions at Kennametal
In related news, VP Carlonda R. Reilly sold 12,013 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $33.12, for a total transaction of $397,870.56. Following the sale, the vice president directly owned 25,143 shares in the company, valued at approximately $832,736.16. This represents a 32.33% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Sagar A. Patel sold 29,499 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $33.50, for a total transaction of $988,216.50. The SEC filing for this sale provides additional information. Insiders sold a total of 47,000 shares of company stock worth $1,583,326 in the last quarter. Insiders own 1.43% of the company’s stock.
Key Headlines Impacting Kennametal
Here are the key news stories impacting Kennametal this week:
- Positive Sentiment: Q4 earnings and revenue exceeded estimates. Kennametal reported adjusted EPS of $2.96, versus the $2.31 consensus estimate, while sales reached $736.6 million, ahead of the $725.7 million forecast. Revenue increased 42.6% year over year, and adjusted EPS rose sharply from $0.34 in the prior-year quarter. Kennametal Surpasses Q4 Earnings and Revenue Estimates
- Positive Sentiment: Fiscal 2026 included record adjusted earnings. Fourth-quarter sales rose 43% on a reported basis and 42% organically. Fiscal-year EPS was $4.42, with record adjusted EPS of $4.57, reflecting stronger volumes and contributions from the company’s strategic growth initiatives. Kennametal Reports Fiscal 2026 and Fourth Quarter Results
- Positive Sentiment: FY2027 guidance was substantially above consensus. Kennametal forecast first-quarter EPS of $2.50-$2.80 and revenue of $745 million-$775 million, compared with consensus estimates of $1.09 and $675 million. Full-year FY2027 EPS guidance of $4.15-$5.15 and revenue guidance of $3.3 billion-$3.5 billion also exceeded consensus estimates of $3.78 and $2.7 billion, respectively. Kennametal Q4 2026 Earnings Call Transcript
- Neutral Sentiment: The market response is weaker than the fundamentals. The results and outlook are clearly bullish, but the stock’s decrease indicates that investors may have already priced in significant improvement, are locking in gains after the strong run toward the 52-week high, or are awaiting further detail from management on the sustainability of growth and margins.
Institutional Inflows and Outflows
A number of hedge funds have recently made changes to their positions in the company. Headlands Technologies LLC grew its position in Kennametal by 80.7% during the 2nd quarter. Headlands Technologies LLC now owns 1,527 shares of the industrial products company’s stock worth $35,000 after acquiring an additional 682 shares during the last quarter. Smartleaf Asset Management LLC boosted its holdings in shares of Kennametal by 142.3% during the second quarter. Smartleaf Asset Management LLC now owns 2,091 shares of the industrial products company’s stock worth $48,000 after purchasing an additional 1,228 shares during the period. ARK Investment Management LLC grew its stake in shares of Kennametal by 16.6% in the fourth quarter. ARK Investment Management LLC now owns 3,210 shares of the industrial products company’s stock worth $91,000 after purchasing an additional 457 shares during the last quarter. Tower Research Capital LLC TRC increased its holdings in Kennametal by 318.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,033 shares of the industrial products company’s stock valued at $161,000 after purchasing an additional 5,351 shares during the period. Finally, CIBC Asset Management Inc bought a new position in Kennametal during the 4th quarter valued at approximately $206,000.
Kennametal Company Profile
Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.
The company’s product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.
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