What Happened?
Shares of industrial materials and tools company Kennametal (NYSE:KMT) fell 19.3% in the afternoon session after the company reported fiscal fourth-quarter results that missed analyst expectations and issued a weak financial outlook for the year ahead. The industrial tool maker posted adjusted earnings per share of $0.34, which missed analyst estimates. Revenue for the quarter also disappointed, as the $516.4 million figure represented a nearly 5% decline from the prior year and fell below forecasts. The company’s outlook for fiscal 2026 particularly weighed on the stock. Management projected full-year adjusted earnings significantly below what analysts had anticipated, which signaled persistent challenges in its industrial markets.
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What Is The Market Telling Us
Kennametal’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for Kennametal and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 19.4% on the news that the company reported strong third-quarter earnings. Kennametal provided a full-year EPS forecast, which blew past analysts' expectations. EPS also outperformed Wall Street's estimates during the quarter. On the other hand, its EPS forecast for next quarter missed and its revenue fell short of Wall Street's estimates. Overall, this quarter was mixed but the strong full year EPS guidance seems to be lifting shares.
Kennametal is down 13.9% since the beginning of the year, and at $20.42 per share, it is trading 34.6% below its 52-week high of $31.23 from November 2024. Investors who bought $1,000 worth of Kennametal’s shares 5 years ago would now be looking at an investment worth $720.56.
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