Kennametal
The 10-second takeaway
For the quarter ended June 30 (Q4), Kennametal missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded slightly.
Margins contracted across the board.
Revenue details
Kennametal reported revenue of $739.2 million. The 13 analysts polled by S&P Capital IQ wanted to see sales of $763.5 million on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $693.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.08. The 14 earnings estimates compiled by S&P Capital IQ anticipated $1.04 per share. GAAP EPS of $1.06 for Q4 were 1.9% higher than the prior-year quarter's $1.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 35.8%, 270 basis points worse than the prior-year quarter. Operating margin was 15.9%, 160 basis points worse than the prior-year quarter. Net margin was 11.6%, 90 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $718.6 million. On the bottom line, the average EPS estimate is $0.96.
Next year's average estimate for revenue is $3.04 billion. The average EPS estimate is $4.27.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 310 members out of 322 rating the stock outperform, and 12 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 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 $48.09.
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