Zacks Downgrades Kennametal to Underperform (KMT)
Kennametal (NYSE:KMT) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a report released on Tuesday. They currently have a $39.00 price target on the stock. Zacks‘s price objective points to a potential downside of 8.00% from the stock’s previous close.
Zacks’ analyst wrote, “Kennametal’s adjusted earnings were $0.75 per share in fourth-quarter fiscal 2014, down 1.3% year over year and below the Zacks Consensus Estimate of $0.89. Adjusted revenues were $700 million, lagging the Zacks Consensus Estimate of $780 million. Top-line growth was adversely affected by fewer working days in the quarter. Weak aerospace and defense end markets, and lower underground coal mining activities in the U.S. and Canada, impacted Industrial and Infrastructure segments respectively. For fiscal 2015, aerospace and defense as well as underground coal mining activities are predicted to remain weak. Revenue growth has been guided in the range of 5-7% as against 10% in fiscal 2014. Thus, we have downgraded our recommendation on Kennametal from Neutral to Underperform.”
Kennametal (NYSE:KMT) traded down 0.42% during mid-day trading on Tuesday, hitting $42.21. 331,018 shares of the company’s stock traded hands. Kennametal has a 52-week low of $38.85 and a 52-week high of $52.37. The stock has a 50-day moving average of $44.84 and a 200-day moving average of $45.16. The company has a market cap of $3.327 billion and a price-to-earnings ratio of 21.30.
Kennametal (NYSE:KMT) last released its earnings data on Thursday, July 31st. The company reported $0.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.89 by $0.14. The company had revenue of $772.00 million for the quarter, compared to the consensus estimate of $785.40 million. During the same quarter in the previous year, the company posted $0.76 earnings per share. The company’s revenue for the quarter was up 15.1% on a year-over-year basis. Analysts expect that Kennametal will post $3.05 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, August 26th. Investors of record on Tuesday, August 12th will be paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 1.70%. The ex-dividend date is Friday, August 8th.
KMT has been the subject of a number of other recent research reports. Analysts at Credit Suisse cut their price target on shares of Kennametal from $49.00 to $46.00 in a research note on Friday, August 1st. Separately, analysts at BMO Capital Markets cut their price target on shares of Kennametal from $52.00 to $49.00 in a research note on Friday, August 1st. Finally, analysts at Jefferies Group reiterated a “hold” rating on shares of Kennametal in a research note on Friday, August 1st. They now have a $48.00 price target on the stock, down previously from $50.00. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and four have given a buy rating to the company. Kennametal has an average rating of “Hold” and an average price target of $49.20.
Kennametal Inc (NYSE:KMT) is a supplier of tooling, engineered components and advanced materials consumed in production processes.
To view Zacks’ full report, visit Zacks’ official website.
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