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Kennametal Inc. (NYSE:KMT) shares have touched a 52-week low, dipping to $20.49, as the company navigates through a period marked by significant market headwinds. According to InvestingPro data, the company maintains a solid financial foundation with a healthy current ratio of 2.53x and has consistently paid dividends for 55 consecutive years. The industrial tooling and materials firm has seen its stock price struggle over the past year, reflecting a broader trend of volatility in the manufacturing sector. Investors have been cautious, as evidenced by Kennametal’s stock performance, with a 1-year total return of -6.49%. This downturn highlights the challenges faced by the company in a competitive landscape that has been further complicated by economic pressures and shifting demand patterns. Despite these challenges, InvestingPro analysis suggests the stock is currently trading near its Fair Value, with 8 additional ProTips available to subscribers, including detailed insights on profitability and management actions.
In other recent news, Kennametal Inc. reported second-quarter fiscal 2025 earnings that did not meet analyst expectations. The company posted an adjusted earnings per share (EPS) of $0.25, missing the estimate of $0.26, and revenue of $482.05 million, falling short of the projected $488.33 million. This performance led to a reduction in the full-year outlook, with the company now expecting annual revenue between $1.95 billion and $2.0 billion, down from the previous consensus of $2.03 billion. Adjusted EPS guidance was also lowered to a range of $1.05 to $1.30, below the analyst consensus of $1.44. In response to these developments, Loop Capital decreased its price target for Kennametal to $21.00 from $26.00, maintaining a Hold rating on the stock.
The company is actively pursuing cost reduction measures, which are anticipated to positively impact financial results by the fourth fiscal quarter. Additionally, Kennametal finalized a separation agreement with former executive Franklin Cardenas, which includes benefits based on the company’s actual performance for the fiscal year 2025. Meanwhile, President and CEO Sanjay Chowbey recently purchased 10,000 shares of Kennametal stock, a move seen by some as a sign of confidence in the company’s future. Despite the challenging conditions, Kennametal reported strong year-to-date cash flow from operations of $101 million, an increase from the previous year’s $88 million.
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