Kennametal (KMT) reports earnings tomorrow: what to expect

What happened

Kennametal will report earnings Wednesday morning. Last quarter it beat revenue expectations with $736.6 million, up 42.6% year on year. This quarter, the market expects revenue to grow 55.7% year on year, up from 3.3% a year earlier.

Confirmed

Global impact / market context

Expectations are high: analysts want revenue growth of 55.7%, far above last year's 3.3%. Kennametal has missed revenue estimates several times in two years, so a shortfall could disappoint investors who bid up the stock on last quarter's strong beat.

Analyst inference

Peers Fortive and Hillman grew revenue about 7.8% and 7.7% respectively, far slower than Kennametal's expected 55.7%. That gap means Kennametal's own results, not industry demand, will decide whether the quarter looks strong or weak.

Analyst inference

What to watch

1. Watch whether reported revenue matches the 55.7% growth expected, and compare it with last quarter's $736.6 million, which beat expectations by 42.6% year on year. Confirmed
2. Watch whether management's guidance for next quarter's profit per share, which means earnings per share, still exceeds analyst expectations, as it did last quarter. Proposed
3. Watch whether Kennametal breaks its pattern of missing revenue estimates; another miss despite high expectations could push investors to sell the stock. Analyst inference

Evidence

• stockstory.org