Overview

* Kennametal ( KMT ) fiscal Q1 sales grow 3%, beating analyst expectations

* Adjusted EPS for fiscal Q1 beats consensus, rising 18% to $0.34

* Company raises annual sales and adjusted EPS outlook

Outlook

* Company expects Q2 sales of $500 mln to $520 mln, with a 2% FX tailwind

* Kennametal ( KMT ) projects FY sales of $2.100 bln to $2.170 bln

* Company anticipates FY adjusted EPS of $1.35 to $1.65

Result Drivers

* SALES GROWTH - Sales increased 3% due to organic growth and favorable currency exchange effects, despite divestiture impact

* OPERATING INCOME DRIVERS - Increase in operating income driven by pricing, tariff surcharges, and restructuring savings, offset by higher costs and inflation

* SEGMENT PERFORMANCE - Metal Cutting sales rose 5% due to organic growth and currency effects; Infrastructure sales up 1% with similar growth factors, offset by divestitures

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Beat $497.97 $476.93

mln mln (7

Analysts

)

Q1 Beat $0.34 $0.23 (8

Adjusted Analysts

EPS )

Q1 EPS $0.30

Q1 Net $24.63

Income mln

Q1 Gross $154.55

Profit mln

Q1 $37.55

Operatin mln

g Income

Q1 $33.69

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "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 ( KMT ) is $21.50, about 2.8% below its November 4 closing price of $22.11

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)