NYSE$KMT

Kennametal Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported strong first quarter, driven by execution of commercial and operational excellence initiatives and improved market conditions.

Kennametal's first quarter fiscal 2022 results showed significant improvement, with sales increasing by 21% year-over-year to $484 million. EPS reached $0.43, and adjusted EPS was $0.44, a substantial increase from the prior year. Strong cash flow from operations and significant operating leverage contributed to the positive results.

  • Sales increased 21 percent year-over-year, driven by growth across all regions and end markets.
  • Earnings per diluted share (EPS) was $0.43, and adjusted EPS was $0.44.
  • Cash flow from operations showed strong performance at $16 million, up approximately 60 percent year-over-year.
  • Operating margin improved significantly, with more than 1,500 basis points improvement.

Headline financials

Total Revenue

$484M

Previous: $400M+20.8%
EPS (adj)

$0.44

Previous: $0.03+1366.7%
Capital Expenditures

-$17.8M

Previous: -$39.3M+54.6%
Free Cash Flow

$18.4M

Previous: -$61M+130.1%
Net Income

$36.2M

Previous: -$21.7M+267.0%
Operating Income

$54.6M

Previous: -$17.2M+417.9%
Gross Profit

$161M

Previous: $105M+53.0%
Cash & Equivalents

$107M

Previous: $98.3M+9.2%
Total Assets

$2.61B

Previous: $2.56B+1.9%
Stock-Based Comp

$7.2M

Previous: $6.99M+3.0%

Revenue & EPS history

Kennametal · Revenue · Quarterly

$484M

Q1 2022+20.8%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The Company expects sales to be up 9 - 14 percent compared to the prior year quarter. Strong operating leverage for the full year.

Tailwinds

  • Sales expected to be up 9 - 14 percent compared to the prior year quarter
  • Strong operating leverage for the full year
  • Free operating cash flow at approximately 100 percent of adjusted net income
  • Capital spending expected to be $110 - $130 million
  • Primary working capital trending toward 30 percent of sales by year-end

Headwinds

  • Cost headwinds of approximately $10 million from prior year temporary cost controls
  • Costs increasing approximately $10 million from the first quarter due to price/raw materials, merit increases and higher depreciation expense
  • First half headwinds from prior year temporary cost controls of approximately $25 million
  • Adjusted ETR expected to be 25 - 28 percent

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 2022

Historical avgQ1 2022

+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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