Kennametal (NYSE:KMT) Updates FY 2027 Earnings Guidance

Kennametal (NYSE:KMT) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided EPS guidance of 4.150-5.150 for the period, compared to the consensus earnings per share estimate of 3.780. The company issued revenue guidance of $3.3 billion-$3.5 billion, compared to the consensus revenue estimate of $2.7 billion. Kennametal also updated its Q1 2027 guidance to 2.500-2.800 EPS.

Kennametal Trading Down 2.2%

KMT stock traded down $0.78 during midday trading on Wednesday, hitting $35.28. The stock had a trading volume of 1,972,445 shares, compared to its average volume of 1,362,043. The company has a current ratio of 2.38, a quick ratio of 0.99 and a debt-to-equity ratio of 0.43. The firm has a market cap of $2.69 billion, a P/E ratio of 19.93, a price-to-earnings-growth ratio of 0.48 and a beta of 1.36. The business has a fifty day moving average price of $34.39 and a two-hundred day moving average price of $36.40. Kennametal has a 1-year low of $17.62 and a 1-year high of $43.81.

Kennametal (NYSE:KMT) last posted its quarterly earnings data on Wednesday, August 5th. The industrial products company reported $2.96 earnings per share for the quarter, topping the consensus estimate of $2.31 by $0.65. Kennametal had a return on equity of 11.02% and a net margin of 6.41%.The firm had revenue of $736.61 million during the quarter, compared to analyst estimates of $725.74 million. During the same period last year, the company posted $0.34 EPS. The business’s quarterly revenue was up 42.6% on a year-over-year basis. Kennametal has set its Q1 2027 guidance at 2.500-2.800 EPS and its FY 2027 guidance at 4.150-5.150 EPS. On average, sell-side analysts predict that Kennametal will post 3.23 earnings per share for the current fiscal year.

Kennametal Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th will be issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Tuesday, August 11th. Kennametal’s dividend payout ratio (DPR) is presently 45.20%.

Analysts Set New Price Targets

KMT has been the subject of several research reports. Zacks Research downgraded Kennametal from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 14th. DA Davidson began coverage on shares of Kennametal in a research note on Tuesday, June 16th. They set a “neutral” rating and a $34.00 price target for the company. Jefferies Financial Group cut shares of Kennametal from a “buy” rating to a “hold” rating and set a $47.50 price objective for the company. in a report on Thursday, May 7th. Morgan Stanley decreased their price objective on Kennametal from $36.00 to $31.00 and set an “equal weight” rating for the company in a report on Friday, July 17th. Finally, JPMorgan Chase & Co. decreased their price target on Kennametal from $40.00 to $34.00 and set an “underweight” rating for the company in a report on Monday, July 13th. Six research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus price target of $35.79.

Insider Buying and Selling

In other Kennametal news, Director Sagar A. Patel sold 29,499 shares of the firm’s stock in a transaction on Monday, June 8th. The stock was sold at an average price of $33.50, for a total value of $988,216.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Carlonda R. Reilly sold 12,013 shares of Kennametal stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $33.12, for a total value of $397,870.56. Following the completion of the sale, the vice president directly owned 25,143 shares of the company’s stock, valued at approximately $832,736.16. This trade represents a 32.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 47,000 shares of company stock valued at $1,583,326. 1.43% of the stock is owned by company insiders.

Key Kennametal News

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Q4 earnings and revenue exceeded estimates. Kennametal reported adjusted EPS of $2.96, versus the $2.31 consensus estimate, while sales reached $736.6 million, ahead of the $725.7 million forecast. Revenue increased 42.6% year over year, and adjusted EPS rose sharply from $0.34 in the prior-year quarter. Kennametal Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Fiscal 2026 included record adjusted earnings. Fourth-quarter sales rose 43% on a reported basis and 42% organically. Fiscal-year EPS was $4.42, with record adjusted EPS of $4.57, reflecting stronger volumes and contributions from the company’s strategic growth initiatives. Kennametal Reports Fiscal 2026 and Fourth Quarter Results
• Positive Sentiment: FY2027 guidance was substantially above consensus. Kennametal forecast first-quarter EPS of $2.50-$2.80 and revenue of $745 million-$775 million, compared with consensus estimates of $1.09 and $675 million. Full-year FY2027 EPS guidance of $4.15-$5.15 and revenue guidance of $3.3 billion-$3.5 billion also exceeded consensus estimates of $3.78 and $2.7 billion, respectively. Kennametal Q4 2026 Earnings Call Transcript
• Neutral Sentiment: The market response is weaker than the fundamentals. The results and outlook are clearly bullish, but the stock’s decrease indicates that investors may have already priced in significant improvement, are locking in gains after the strong run toward the 52-week high, or are awaiting further detail from management on the sustainability of growth and margins.

Institutional Investors Weigh In On Kennametal

Hedge funds have recently bought and sold shares of the stock. Royal Bank of Canada increased its stake in Kennametal by 17.7% in the first quarter. Royal Bank of Canada now owns 30,474 shares of the industrial products company’s stock valued at $649,000 after acquiring an additional 4,578 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Kennametal by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 46,307 shares of the industrial products company’s stock worth $986,000 after buying an additional 2,013 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Kennametal by 13.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 240,556 shares of the industrial products company’s stock valued at $5,124,000 after purchasing an additional 28,020 shares during the period. Jane Street Group LLC grew its holdings in shares of Kennametal by 39.3% in the first quarter. Jane Street Group LLC now owns 229,903 shares of the industrial products company’s stock worth $4,897,000 after purchasing an additional 64,907 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of Kennametal in the second quarter worth $585,000.

Kennametal Company Profile

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company’s product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.