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The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings has decreased 3.9% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in three of the preceding four quarters while missing in one, the average beat being 9.6%.
Let's see how things are shaping up for KMT this earnings season.
Factors to Note
Lower U.S. land rig counts and the destocking of inventory of the customers are expected to have hurt the Infrastructure segment in the second quarter of fiscal 2024. For the fiscal second quarter, the Zacks Consensus Estimate for the segment’s revenues is pegged at $191 million, indicating a 3.5% decrease from the year-ago reported figure.
The increasing cost of sales due to escalating input costs, and rising research and development expenses are likely to have dented KMT’s bottom line in the to-be-reported quarter. The consensus estimate for the company’s adjusted earnings is pinned at 25 cents per share, indicating a 7.4% decline from the year-ago quarter’s reported number.
Given the company’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Kennametal's overseas business in the to-be-reported quarter. The consensus estimate for the company’s second-quarter fiscal 2024 revenues is pegged at $495 million, suggesting a decline of 0.4% from the year-ago quarter’s reported figure.
However, strength in its aerospace & defense end markets is likely to have supported the Metal Cutting segment in the fiscal second quarter. The consensus mark for the segment’s to-be-reported quarter’s revenues is $302 million, implying a 1% increase from the year-ago reported number.
Kennametal’s innovation capabilities and mega-trends like hybrid and electric vehicles and digitalization are expected to have bolstered the company’s performance in the to-be-reported quarter.
Our proven model does not conclusively predict an earnings beat for KMT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: Kennametal has an Earnings ESP of -1.58%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Kennametal presently carries a Zacks Rank of 3.
Highlights of Q1 Earnings
Kennametal reported first-quarter fiscal 2024 (ended Sep 30, 2023). adjusted earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 35 cents. The bottom line increased 20.6% from the year-ago figure. In the quarter under review, Kennametal’s revenues were $492.5 million, decreasing 0.5% from the year-ago quarter’s figure. KMT’s revenues missed the consensus estimate of $499 million.
Stocks to Consider
Here are some companies within the broader Industrial Products sector that, according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
The company is scheduled to release fourth-quarter 2023 results on Feb 22. Alarm.com’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 35%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2023 results on Feb 15.
Ingersoll Rand’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 16.1%.
RBC Bearings Incorporated (RBC - Free Report) has an Earnings ESP of +8.19% and a Zacks Rank of 3 at present. The company is slated to release third-quarter fiscal 2024 (ended December 2023) results on Feb 8.
RBC Bearings’ earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 7.7%.
Image: Bigstock
Kennametal (KMT) to Report Q2 Earnings: What's in the Cards?
Kennametal Inc. (KMT - Free Report) is scheduled to release second-quarter fiscal 2024 (ended Dec 31, 2023) results on Feb 7 before market open.
The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings has decreased 3.9% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in three of the preceding four quarters while missing in one, the average beat being 9.6%.
Let's see how things are shaping up for KMT this earnings season.
Factors to Note
Lower U.S. land rig counts and the destocking of inventory of the customers are expected to have hurt the Infrastructure segment in the second quarter of fiscal 2024. For the fiscal second quarter, the Zacks Consensus Estimate for the segment’s revenues is pegged at $191 million, indicating a 3.5% decrease from the year-ago reported figure.
The increasing cost of sales due to escalating input costs, and rising research and development expenses are likely to have dented KMT’s bottom line in the to-be-reported quarter. The consensus estimate for the company’s adjusted earnings is pinned at 25 cents per share, indicating a 7.4% decline from the year-ago quarter’s reported number.
Given the company’s extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt Kennametal's overseas business in the to-be-reported quarter. The consensus estimate for the company’s second-quarter fiscal 2024 revenues is pegged at $495 million, suggesting a decline of 0.4% from the year-ago quarter’s reported figure.
However, strength in its aerospace & defense end markets is likely to have supported the Metal Cutting segment in the fiscal second quarter. The consensus mark for the segment’s to-be-reported quarter’s revenues is $302 million, implying a 1% increase from the year-ago reported number.
Kennametal’s innovation capabilities and mega-trends like hybrid and electric vehicles and digitalization are expected to have bolstered the company’s performance in the to-be-reported quarter.
Kennametal Inc. Price and Consensus
Kennametal Inc. price-consensus-chart | Kennametal Inc. Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for KMT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: Kennametal has an Earnings ESP of -1.58%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Kennametal presently carries a Zacks Rank of 3.
Highlights of Q1 Earnings
Kennametal reported first-quarter fiscal 2024 (ended Sep 30, 2023). adjusted earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 35 cents. The bottom line increased 20.6% from the year-ago figure. In the quarter under review, Kennametal’s revenues were $492.5 million, decreasing 0.5% from the year-ago quarter’s figure. KMT’s revenues missed the consensus estimate of $499 million.
Stocks to Consider
Here are some companies within the broader Industrial Products sector that, according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Alarm.com Holdings, Inc. (ALRM - Free Report) has an Earnings ESP of + 8.79% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release fourth-quarter 2023 results on Feb 22. Alarm.com’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 35%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2023 results on Feb 15.
Ingersoll Rand’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 16.1%.
RBC Bearings Incorporated (RBC - Free Report) has an Earnings ESP of +8.19% and a Zacks Rank of 3 at present. The company is slated to release third-quarter fiscal 2024 (ended December 2023) results on Feb 8.
RBC Bearings’ earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 7.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.