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Jun 30, 2024
Kennametal Q4 2024 Earnings Report
Reported fourth quarter and fiscal year results, with EPS increasing slightly year-over-year despite market challenges.
Key Takeaways
Kennametal reported Q4 earnings per diluted share of $0.47, a slight increase from $0.45 in the prior year quarter. Sales decreased by 1% to $543 million. The company met its revenue and EPS outlook, generating $277 million in cash from operations for the full year, the highest as a percent of sales in over 25 years. Kennametal also provided FY25 Q1 and annual outlook.
Q4 earnings per diluted share (EPS) of $0.47 compared to $0.45 in the prior year quarter.
Sales of $543 million decreased 1 percent from $550 million in the prior year quarter.
Operating income was $61 million, or 11.3 percent margin, compared with $56 million, or 10.2 percent margin, in the same quarter last year.
The Company repurchased 857 thousand shares of Kennametal common stock for $22 million under its share repurchase program.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company’s expectations for the first quarter of fiscal 2025 and the full year are as follows:
Positive Outlook
- Sales expected to be $480 - $500 million for Q1 2025.
- Adjusted EPS is expected to be $0.20 - $0.30 for Q1 2025.
- Sales expected to be $2.0 - $2.1 billion for FY25.
- Adjusted EPS is expected to be $1.30 - $1.70 for FY25.
- Pricing actions expected to cover raw material costs, wages and general inflation.
Challenges Ahead
- Foreign exchange anticipated to be a headwind of 1 percent compared to the first quarter of fiscal 2024.
- Adjusted ETR is expected to be approximately 27.5 percent for Q1 2025.
- Improved operating performance offset by higher ETR and currency headwinds for FY25.
- Interest expense is expected to be approximately $27 million for FY25.
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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