KENNAMETAL INC Reports Fourth Quarter FY2023 Earnings Results
August 7, 2023
🌥️Earnings Overview
Kennametal Inc ($NYSE:KMT). reported its earnings results for the fourth quarter of FY 2023, ending on June 30th 2023. Total revenue for the quarter was USD 550.2 million, showing an increase of 3.8% from the same period the year prior. Unfortunately, net income in the same period, declined by 12.7% to USD 36.4 million compared to the previous year.
Share Price
The stock opened at $28.7 and closed at $28.9, representing a drop of 5.2% from the previous closing price of $30.5. The company attributed the decrease in revenue to lower sales in its metalworking solutions segment, which was affected by softening market conditions throughout the industry. Overall, the company’s fourth quarter earnings results were weaker than expected, with investors reacting negatively to the news and sending the stock lower. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kennametal Inc. More…
| Total Revenues | Net Income | Net Margin |
| 2.08k | 118.46 | 5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kennametal Inc. More…
| Operations | Investing | Financing |
| 214.6 | -94.94 | -150.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kennametal Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.55k | 1.23k | 15.89 |
Key Ratios Snapshot
Some of the financial key ratios for Kennametal Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.3% | 15.6% | 9.1% |
| FCF Margin | ROE | ROA |
| 5.1% | 9.2% | 4.6% |
Analysis
At GoodWhale, we have conducted an analysis of KENNAMETAL INC‘s fundamentals and have assessed it to be a medium risk investment. Our Risk Rating system takes into account various financial and business aspects in order to determine the risk profile of the company. We have identified 3 risk warnings in the income sheet, balance sheet, and cashflow statement. If you would like to know more about the specifics, please register on our website goodwhale.com. We will be more than happy to provide additional insights into the company’s financials. More…
Peers
In the metalworking and mining industries, there is intense competition between Kennametal Inc and its competitors KFM Kingdom Holdings Ltd, Kennametal India Ltd, and Jiangsu Tongrun Equipment Technology Co Ltd. All four companies are striving to develop new technologies and products to gain market share. This competition has led to innovation and lower prices for customers. It is expected that this competition will continue to benefit customers in the future.
– KFM Kingdom Holdings Ltd ($SEHK:03816)
Kingdom Holdings Ltd has a market cap of 115.8M as of 2022. The company has a return on equity of 3.48%. The company is involved in the business of investment holding and the provision of management services. The Group’s investment portfolio includes shares, properties, loans and other investments.
– Kennametal India Ltd ($BSE:505890)
Founded in 1938, Kennametal India Ltd is a leading manufacturer of metal cutting and wear-resistant solutions. With a market cap of 56.61B as of 2022, the company has a strong presence in the global market. Kennametal India’s return on equity is 14.77%, indicating that the company is efficient in utilizing its shareholders’ equity to generate profits. The company’s products are used in a variety of industries, including aerospace, automotive, construction, energy, and mining. Kennametal India’s products are known for their durability and performance, making the company a trusted partner for customers around the world.
– Jiangsu Tongrun Equipment Technology Co Ltd ($SZSE:002150)
Jiangsu Tongrun Equipment Technology Co., Ltd. is engaged in the research, development, production and sale of metallurgical equipment and industrial furnaces. The Company’s products portfolio includes blast furnaces, sintering machines, coke ovens, ironmaking and steelmaking equipment, non-ferrous metal smelting and rolling equipment, industrial furnaces, environmental protection and energy conservation products, new materials and new energy equipment, spare parts and other products. The Company operates its business through two segments: manufacture and sale of metallurgical equipment and industrial furnaces, and provision of engineering services. The Company has operations in domestic and overseas markets.
Summary
For the fourth quarter of FY2023, KENNAMETAL INC reported a total revenue of USD 550.2 million, a 3.8% increase year-on-year. Unfortunately, the same period saw a 12.7% decline in net income, which reached USD 36.4 million. The stock price of the company reacted negatively to the news, likely due to the decreased net income and investors’ fears that the company’s profits may continue to decrease.
It is worth noting that the overall revenue has increased, suggesting that the company’s operations are growing in spite of the decreased profits. Investors should further analyze the company’s financial reports to understand the underlying reasons for the decreased profit before determining whether or not to invest in KENNAMETAL INC.
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