NYSE$KMT

Kennametal Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Kennametal's first quarter of fiscal year 2021 experienced a sales decrease but outperformed seasonal expectations, driven by simplification/modernization initiatives and cost control.

Kennametal reported a 23% year-over-year decrease in sales to $400 million for the first quarter of fiscal year 2021, but sales increased 6% sequentially, outpacing the normal seasonal decline. The company reported a loss per share of $0.26, compared to earnings per share of $0.08 in the prior year quarter, and adjusted EPS of $0.03, compared with adjusted EPS of $0.17 in the prior year quarter. Strong execution on simplification/modernization initiatives and cost control measures helped protect margins, with $22 million in incremental benefits from these initiatives.

  • Sales decreased 23% year-over-year to $400 million, but increased 6% sequentially, outpacing the normal seasonal decline.
  • Early wins in fit-for-purpose market segment driven by commercial excellence.
  • Simplification/modernization initiatives and cost control measures protected margins, yielding $22 million in incremental benefits.
  • Company maintains a strong cash balance and liquidity position.

Headline financials

Total Revenue

$400M

Previous: $518M-22.7%
EPS (adj)

$0.03

Previous: $0.17-82.4%
Capital Expenditures

-$39.3M

Previous: -$72.5M+45.7%
Free Cash Flow

-$61M

Previous: -$66M+7.5%
Net Income

-$21.7M

Previous: $6.47M-435.2%
Operating Income

-$17.2M

Previous: $16.4M-204.9%
Gross Profit

$105M

Previous: $139M-24.4%
Cash & Equivalents

$98.3M

Previous: $114M-13.4%
Total Assets

$2.56B

Previous: $2.6B-1.6%
Stock-Based Comp

$6.99M

Previous: $8.26M-15.3%

Revenue & EPS history

Kennametal · Revenue · Quarterly

$400M

Q1 2021-22.7%vs Q1 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

While there are signs of improvement, overall global market conditions remain unpredictable and visibility into primary end markets remains limited. Therefore, the Company will not be providing an FY21 outlook at this time, outside of capital spending, which is unchanged and expected to be between $110 million and $130 million. The Company will provide more details regarding its second quarter assumptions on its conference call.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.9%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+0.8%

Avg return

30 days after

58%

39 / 67 earnings

Positive

+18.4%

Q3 2026

Best reaction

-10.8%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+18.4%-1.2%-13.1%
Q2 2026+7.2%+13.8%+4.0%
Q1 2026+13.9%+22.4%+26.0%
Q3 2025+0.1%+10.6%+10.6%
Q2 2025-3.4%-5.6%-4.4%
Q1 2025+10.4%+13.2%+2.6%
Q4 2024+3.8%+1.4%+1.3%
Q3 2024+6.0%+5.0%-0.1%
Q2 2024-5.2%-0.8%+1.8%
Q1 2024+1.0%-0.4%+4.5%
Q4 2023-5.6%-9.8%-13.2%
Q3 2023+5.3%+3.7%-4.0%
Q2 2023-3.8%-6.0%-2.9%
Q1 2023-5.5%-7.8%+0.3%
Q4 2022-1.4%-2.3%-12.7%
Q3 2022+3.2%+1.3%+7.5%
Q2 2022-2.2%-3.3%-11.3%
Q1 2022+0.3%-3.0%-12.2%
Q4 2021+4.7%+0.7%+2.7%
Q3 2021+2.8%+4.1%-6.0%
Q2 2021-5.4%-5.6%+1.9%
Q1 2021-6.3%-3.7%+14.8%
Q4 2020-3.5%+8.6%+14.5%
Q3 2020+3.0%+4.5%+23.7%
Q2 2020-5.4%-5.1%-9.7%
Q1 2020+2.5%+3.9%+6.7%
Q4 2019-6.5%-10.4%-13.4%
Q3 2019-5.7%-12.4%-19.6%
Q2 2019-0.4%-3.9%-4.5%
Q1 2019+1.0%+2.2%+2.3%
Q4 2018+8.0%+2.2%+8.4%
Q3 2018+0.1%+5.9%+1.3%
Q2 2018-4.3%-7.7%-15.9%
Q1 2018+8.6%+5.1%+6.7%
Q4 2017-5.4%-2.0%-5.2%
Q3 2017+7.8%+5.7%-1.7%
Q2 2017+2.7%+5.8%+6.4%
Q1 2017-4.5%-3.9%+22.9%
Q4 2016+4.8%+10.5%+11.1%
Q3 2016+1.7%
Q2 2016+11.2%
Q1 2016-3.8%
Q4 2015-3.0%
Q3 2015+7.8%
Q2 2015+1.4%
Q1 2015-7.4%
Q4 2014-4.8%
Q3 2014+2.9%
Q2 2014-9.1%
Q1 2014+1.3%
Q4 2013+2.7%
Q3 2013+2.9%
Q2 2013-3.5%
Q1 2013-6.6%
Q4 2012+12.6%
Q3 2012-7.8%
Q2 2012-0.8%
Q1 2012-10.8%
Q4 2009+9.8%
Q4 2011+9.8%
Q3 2011+4.1%
Q3 2010+4.1%
Q2 2011-0.8%
Q2 2010+1.1%
Q1 2011+1.1%
Q1 2010+1.1%
Q4 2010+1.1%

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