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Sep 30, 2023
Kennametal Q1 2024 Earnings Report
Kennametal's financial performance remained stable with slight decrease in sales and increase in EPS.
Key Takeaways
Kennametal reported flat sales of $492 million compared to the previous year, with a slight increase in earnings per diluted share (EPS) to $0.37. The company highlighted strong cash flow from operations and progress in restructuring efforts, while noting weaker than expected results in China.
Earnings per diluted share (EPS) increased to $0.37 from $0.34 in the prior year quarter.
Sales remained flat at $492 million compared to $495 million in the prior year quarter.
Strong cash flow from operations of $26 million compared to negative $11 million in the prior year quarter.
Approximately $30 million was returned to shareholders through share repurchases and dividends.
Revenue by Geographic Location
Forward Guidance
Kennametal provided guidance for the second quarter and full fiscal year 2024, including sales and adjusted EPS estimates.
Positive Outlook
- Sales expected to be $490 - $515 million for the second quarter of fiscal 2024.
- Foreign exchange anticipated to be a tailwind of approximately 1 percent compared to the second quarter of fiscal 2023.
- Adjusted EPS is expected to be $0.20 - $0.30 for the second quarter of fiscal 2024.
- Sales expected to be $2.1 - $2.2 billion for the full fiscal year 2024.
- Free operating cash flow of 100 percent of adjusted net income for the full fiscal year 2024.
Challenges Ahead
- Adjusted EPS is expected to be $1.75 - $2.15 for the full fiscal year 2024.
- Interest expense is expected to be approximately $28 million for the full fiscal year 2024.
- Adjusted ETR is expected to be approximately 24 percent for the full fiscal year 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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