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Dec 31, 2022
Kennametal Q2 2023 Earnings Report
Kennametal's second quarter of fiscal year 2023 experienced sales growth driven by pricing actions and end market resilience, particularly in the Americas and EMEA, but was tempered by US dollar strength and inflation.
Key Takeaways
Kennametal's Q2 2023 results showed a 2% increase in sales to $497 million, driven by 11% organic growth, though offset by unfavorable currency exchange. Earnings per diluted share (EPS) was $0.27. The company returned approximately $27 million to shareholders through share repurchases and dividends.
Sales increased 2% year-over-year to $497 million, with 11% organic growth.
Growth was driven by pricing actions and end market resilience, especially in the Americas and EMEA.
EPS was reported at $0.27.
Approximately $27 million was returned to shareholders through share repurchases and dividends.
Revenue by Geographic Location
Forward Guidance
The Company’s expectations for the third quarter of fiscal 2023 and the full year, which remain largely unchanged, are as follows:
Positive Outlook
- Sales expected to be $520 - $540 million; includes approximately 7 percent of price realization
- Adjusted operating income expected to be at least $40 million
- Pricing is expected to substantially cover raw material costs of $23 million, higher wages and general inflation compared to the prior year quarter
- Under-absorption and price/raw effects expected to improve sequentially
- Free operating cash flow at approximately 100 percent of adjusted net income
Challenges Ahead
- Includes a headwind of approximately $20 million from USD strength compared to the third quarter of fiscal 2022
- USD strength is expected to be a headwind of approximately $4 million compared to the prior year quarter
- Adjusted EPS is expected to be $1.30 - $1.70
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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