NYSE$KMT

Kennametal Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Kennametal reported increased sales and EPS compared to the prior year quarter, driven by organic growth and pricing actions.

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.

Headline financials

Total Revenue

$530M

Previous: $516M+2.7%
EPS (adj)

$0.53

Previous: $0.53+0.0%
Capital Expenditures

$36.8M

Previous: $33.2M+10.6%
Free Cash Flow

$85.4M

Previous: $113M-24.4%
Net Income

$42.8M

Previous: $36M+18.9%
Operating Income

$62.7M

Previous: $60.8M+3.1%
Gross Profit

$170M

Previous: $176M-3.4%
Cash & Equivalents

$85.6M

Previous: $154M-44.4%
Total Assets

$2.57B

Previous: $2.67B-3.5%
Stock-Based Comp

$2.96M

Previous: $5.42M-45.3%

Revenue & EPS history

Kennametal · Revenue · Quarterly

$530M

Q4 2022+2.7%vs Q4 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

The Company’s expectations for the first quarter of fiscal 2023 and the full year are as follows:

Tailwinds

  • 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

Headwinds

  • 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
  • Uncertainties related to changes in macroeconomic and/or global conditions

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 Q4 2022

Historical avgQ4 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro