NYSE$KMT

Kennametal Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Kennametal's financial performance improved, marked by increased sales and earnings per share.

Kennametal reported a 10% increase in sales to $487 million and EPS of $0.37 ($0.35 adjusted) for Q2 2022. The company saw growth in all end markets except Transportation, driven by organic growth and pricing actions. They also repurchased $23 million of common stock during the quarter.

  • Sales increased 10 percent year-over-year to $487 million.
  • Earnings per diluted share (EPS) reached $0.37, and adjusted EPS was $0.35.
  • Operating leverage improved significantly, driving higher operating margin.
  • The company repurchased $23 million of common stock during the quarter.

Headline financials

Total Revenue

$487M

Previous: $441M+10.5%
EPS (adj)

$0.35

Previous: $0.16+118.7%
Capital Expenditures

-$37.7M

Previous: -$68.6M+45.0%
Free Cash Flow

-$6.32M

Previous: -$49.2M+87.2%
Net Income

$31.4M

Previous: $19.4M+62.1%
Operating Income

$47.5M

Previous: $19M+149.6%
Gross Profit

$153M

Previous: $122M+25.9%
Cash & Equivalents

$102M

Previous: $103M-1.3%
Total Assets

$2.61B

Previous: $2.61B-0.2%
Stock-Based Comp

$6.17M

Previous: $5.81M+6.3%

Revenue & EPS history

Kennametal · Revenue · Quarterly

$487M

Q2 2022+10.5%vs Q2 2021
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Kennametal expects sales between $500 million and $520 million, and adjusted operating income of at least $55 million for the third quarter of fiscal year 2022. For the full year, they anticipate strong operating leverage and free operating cash flow at approximately 100 percent of adjusted net income.

Tailwinds

  • Sales expected to be $500 million to $520 million for Q3 2022.
  • Adjusted operating income expected to be at least $55 million for Q3 2022
  • Strong operating leverage for the full year
  • Free operating cash flow at approximately 100 percent of adjusted net income
  • Adjusted ETR is now expected to be 26 - 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 Q2 2022

Historical avgQ2 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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