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Mar 31, 2022
Kennametal Q3 2022 Earnings Report
Announced strong third quarter fiscal year 2022 results with increased sales and EPS.
Key Takeaways
Kennametal reported a strong third quarter in fiscal year 2022. Sales increased by 6% year-over-year to $512 million, with organic growth of 8%. EPS was $0.42, and adjusted EPS was $0.47. The company saw significant improvement in operating margin and repurchased $15 million of common stock during the quarter.
Sales increased 6 percent year-over-year; 8 percent on an organic basis.
Earnings per diluted share (EPS) of $0.42 and adjusted EPS of $0.47.
Strong operating leverage drove significant improvement in operating margin.
Repurchased $15 million of common stock in the quarter; $50 million year-to-date.
Revenue by Geographic Location
Forward Guidance
The Company’s expectations for the fourth quarter of fiscal 2022 and the full year are as follows:
Positive Outlook
- Sales expected to be $510 million to $530 million
- Adjusted operating income expected to be at least $55 million
- Strong operating leverage for the full year
- Prior year temporary cost controls of approximately $25 million (affected first half only)
- Adjusted ETR is expected to be 26 - 28 percent
Challenges Ahead
- Free operating cash flow now expected to be approximately 75 percent of adjusted net income, due primarily to higher working capital from lower-than-expected sales because of COVID-19 shutdowns in China and the broader European effects from the conflict in Ukraine
- Capital spending now expected to be approximately $105 million
- Primary working capital now expected to remain around 31 percent of sales by year-end
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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