Kennametal Q2 sales rise 10%, beat estimates

Overview

• Industrial tech firm's fiscal Q2 sales rose 10%, beating analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Growth driven by tungsten pricing and market improvements

Outlook

• Kennametal expects Q3 sales between $545 mln and $565 mln

• Company anticipates full-year sales of $2.190 bln to $2.250 bln

• Kennametal projects full-year adjusted EPS of $2.05 to $2.45

Result Drivers

• TUNGSTEN PRICING - Sales growth driven by volume increase due to buy-ahead in response to tungsten pricing environment

• PRICING AND TARIFFS - Operating income boosted by favorable pricing timing and tariff surcharges in Metal Cutting segment

• RESTRUCTURING SAVINGS - Incremental restructuring savings contributed to operating income increase

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for Kennametal Inc is $28.00, about 21.7% below its February 3 closing price of $35.76

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nPn4wfXZxa

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