Kennametal (NYSE: KMT) is expected to report Q1 earnings around Oct. 24. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Kennametal's revenues will grow 4.8% and EPS will contract 0.0%.
The average estimate for revenue is $690.6 million. On the bottom line, the average EPS estimate is $0.88.
Revenue details
Last quarter, Kennametal booked revenue of $739.2 million. 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
Last quarter, non-GAAP EPS came in at $1.08. GAAP EPS of $1.05 for Q4 were 1.0% 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.
Recent performance
For the preceding quarter, gross margin was 35.8%, 270 basis points worse than the prior-year quarter. Operating margin was 16.3%, 120 basis points worse than the prior-year quarter. Net margin was 11.6%, 90 basis points worse than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $2.95 billion. The average EPS estimate is $4.20.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 316 members out of 328 rating the stock outperform, and 12 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Kennametal a green thumbs-up, and one 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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