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Dec 31, 2023
Kennametal Q2 2024 Earnings Report
Kennametal's financial performance was reported for Q2 2024, showing mixed results with flat sales but strong cash from operations.
Key Takeaways
Kennametal reported flat sales of $495 million compared to the prior year quarter, with EPS of $0.29. The company is focusing on cost reductions and has updated its full-year outlook to reflect softening market conditions. An additional $200 million share repurchase program was announced.
Earnings per diluted share (EPS) of $0.29 compared to $0.27 in the prior year quarter.
Strong YTD cash from operations of $88 million compared to $53 million in the prior year.
Returned approximately $31 million to shareholders through share repurchases and dividends.
Announced an additional share repurchase program of up to $200 million over three years.
Revenue by Geographic Location
Forward Guidance
The Company’s expectations for the third quarter of fiscal 2024 and the full year are as follows:
Positive Outlook
- Sales expected to be $510 - $530 million for Q3 2024.
- Adjusted EPS is expected to be $0.25 - $0.35 for Q3 2024.
- Sales now expected to be $2.020 - $2.070 billion for the full year.
- Adjusted EPS is now expected to be $1.35 - $1.65 for the full year.
- Free operating cash flow of 100 percent of adjusted net income for the full year.
Challenges Ahead
- Foreign exchange anticipated to be a headwind of approximately 1 percent compared to the third quarter of fiscal 2023.
- Interest expense is expected to be approximately $28 million for the full year.
- Adjusted ETR is now expected to be approximately 21 percent for the full year.
- Softening across end markets
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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