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PITTSBURGH - Kennametal Inc. (NYSE:KMT) reported fiscal third-quarter earnings that beat analyst expectations and raised its full-year outlook on Wednesday.
The tooling and industrial materials maker’s shares jumped 4.94% in premarket trading after the release.
The company posted adjusted earnings per share of $0.47 for the quarter ended March 31, significantly above the $0.25 consensus estimate. Revenue came in at $486.4 million, slightly below analysts’ projections of $488.5 million and down 6% YoY.
"During the quarter we demonstrated continued progress on our growth and cost initiatives despite weak market conditions, primarily in EMEA and the Americas," said Sanjay Chowbey, President and CEO. He noted that while sales were slightly below the midpoint of guidance, adjusted EPS exceeded the upper end of the company’s outlook, aided by an advanced manufacturing production credit.
Kennametal’s Metal Cutting segment saw sales decline 7% YoY to $304.3 million, while Infrastructure sales fell 4% to $182.1 million. The company cited organic sales declines and unfavorable currency effects.
Looking ahead, Kennametal raised its fiscal 2025 adjusted EPS guidance to $1.30-$1.45, up from its previous outlook and above the $1.13 analyst consensus. It also narrowed its full-year revenue forecast to $1.97-$1.99 billion.
The company returned approximately $40 million to shareholders during the quarter through $25 million in share repurchases and $15 million in dividends.
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