Loading...
•
Jun 30, 2022
Kennametal Q4 2022 Earnings Report
Kennametal reported increased sales and EPS compared to the prior year quarter, driven by organic growth and pricing actions.
Key Takeaways
Kennametal reported Q4 2022 results with sales increasing by 3% year-over-year to $530 million, driven by 7% organic growth. EPS was $0.50, compared to $0.41 in the prior year quarter, while adjusted EPS was $0.53, the same as the prior year quarter. The company highlighted strong operating leverage and success in executing operational and commercial excellence initiatives.
Q4 sales increased 3% year-over-year to $530 million; 7% on an organic basis.
Q4 EPS was $0.50, compared to $0.41 in the prior year quarter; adjusted EPS was $0.53, compared to $0.53 in the prior year quarter.
Operating income was $63 million, or 11.8% margin, compared with $61 million, or 11.8% margin, in the same quarter last year.
The company repurchased 1.3 million shares of Kennametal common stock for $35 million during the quarter.
Revenue by Geographic Location
Forward Guidance
The Company’s expectations for the first quarter of fiscal 2023 and the full year are as follows:
Positive Outlook
- Pricing actions expected to offset raw material costs, wage and general inflation
- Free operating cash flow at approximately 100 percent of adjusted net income
- Primary working capital as a percent of sales maintained at 31 - 33 percent throughout the year
- Capital spending expected to be $100 - $120 million
- $200 million three-year share repurchase program to continue
Challenges Ahead
- Sales expected to be $480 - $500 million for Q1 2023
- USD strength expected to be a $25 - $30 million headwind compared to the first quarter of fiscal 2022
- Adjusted operating income expected to be at least $45 million for Q1 2023
- Adjusted ETR is expected to be 26 - 28 percent
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
Loading earnings performance data...
Loading earnings reaction data...