Kennametal (NYSE: KMT ) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q3), Kennametal beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue improved and GAAP earnings per share improved significantly.
Gross margins shrank, operating margins dropped, net margins increased.
Kennametal logged revenue of $696.4 million. The 12 analysts polled by S&P Capital IQ looked for revenue of $679.5 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $614.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.98. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.93 per share. GAAP EPS of $0.93 for Q3 were 21% higher than the prior-year quarter's $0.77 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.4%, 230 basis points worse than the prior-year quarter. Operating margin was 14.8%, 40 basis points worse than the prior-year quarter. Net margin was 10.8%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $766.6 million. On the bottom line, the average EPS estimate is $1.08.
Next year's average estimate for revenue is $2.75 billion. The average EPS estimate is $3.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 295 members out of 308 rating the stock outperform, and 13 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Kennametal a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kennametal is outperform, with an average price target of $50.25.