Wed, Apr. 13, 2:24 PM
- Investors should take profits on machinery stocks ahead of earnings, J.P. Morgan analysts say, as valuations are stretched after the sector outperformed the S&P in Q1 +17% vs. +1.3%, and investors likely will have little tolerance for weaker than expected performance.
- The firm suggests avoiding Deere (DE +1.9%), Agco (AGCO +3.5%) and CNH Industrial (CNHI +3%) on weaker fundamentals with downside risk to the market outlooks for each region, and Paccar (PCAR +2.9%) on weaker NAFTA HD truck demand vs. its guide for a 12% decline in U.S. and Canada retail sales.
- However, JPM likes Allison Transmission (ALSN +2.4%) heading into Q1 as it has underperformed peers while its exposure to HD Class 8 long haul is limited and MD orders are up 5% YTD.
- Rated Neutral CAT, MTW, JOY, NAV, TEX, MCRN, PH, KMT, ETN, ITW.
Dec. 15, 2015, 12:48 PM
Dec. 15, 2015, 9:18 AM
Dec. 14, 2015, 5:07 PM
- Kennametal (NYSE:KMT) -21.8% AH after warning that it expects as much as a 30%-60% decrease in previously announced guidance for FY 2016 adjusted EPS, citing expectations of lower revenue and the current lack of visibility to its end markets.
- KMT says revenue expectations have been hurt by further declines in its end markets as evidenced by continued declines in industrial production indexes since its November guidance, particularly China automotive and U.S. and China coal mining, as well as further reductions in oil and gas activity.
- Current analyst consensus estimates predict a 14% Y/Y decline in revenues of to $2.28B and a 26% Y/Y decline in EPS to $1.50.
May 5, 2015, 8:58 AM
- Net income of $36.7M, or $0.46 per share vs. $60M, or $0.75 per share, in the prior year quarter.
- Revenue by segment: Industrial -11; Infrastructure -20%.
- The company now expects fiscal 2015 total sales to decline in the range of 7%-8% (vs. 6%-7%) and organic sales to decline in the range of 5%-6% (vs. 4%-5%). EPS guidance has been tightened to a range of $1.95-$2.05 (vs. $1.90-$2.10).
- FQ3 results
- KMT -3.2% premarket
May 5, 2015, 8:09 AM
- Kennametal (NYSE:KMT): FQ3 EPS of $0.46 beats by $0.02.
- Revenue of $638.97M (-15.4% Y/Y) misses by $6.59M.
- Shares +2.38% PM.
Mar. 13, 2015, 10:43 AM
- Kennametal (KMT -1.9%) reports consolidated orders declined 11% Y/Y and organic orders slipped 6% for the three months ended Feb. 28, citing weaker order rates for the Infrastructure segment due to the ongoing decline in the oil and gas markets as well as continued weak demand from the mining industry.
- KMT says industrial segment orders were modestly lower in both its tooling business as well as the distribution-focused WIDIA brand.
Jan. 29, 2015, 9:40 AM
- Net loss of $388M vs. $24.2M in the same period a year ago. Adjusted EPS of $0.52 vs. $0.50 in the prior year.
- Revenue by segment: Industrial flat; Infrastructure -5%.
- The company reduced its EPS guidance for fiscal 2015 to a range of $1.90-$2.10, compared to a previous range of $2.80-$3.00, due to reduced infrastructure sales, a rapid decline in the oil and gas markets and weak demand from the mining industry.
- FQ2 results
Dec. 2, 2014, 2:26 PM
- The pain caused by falling oil prices isn’t just for energy companies, as industrial companies with exposure to the industry also have started to sink under the strain: Dover (DOV +2.2%) shares have slipped 4.3% during the past month, while Kennametal (KMT -0.3%) has shed 8% and MRC Global (MRC -6.1%) has tumbled 12%.
- Seeing "potentially disastrous implications for U.S. energy and production companies and their suppliers," Global Hunter downgraded the three companies today; the firm says MRC has 46% exposure to U.S. upstream capex after previously estimated the company’s North American market share at ~24%, "exposing it broadly to the ups and downs of the broader market.”
- Earlier: Dover moves higher despite Goldman downgrade to Sell
Jan. 30, 2014, 3:43 PM
- Kennametal (KMT -7.4%) remains sharply lower after FQ2 results revealed higher sales but lower profits compared to the previous year.
- Revenues rose 9% to $690M, but just 2% was an organic increase and 7% came from the acquisition of Allegheny Technologies' tungsten materials business.
- KMT also issued downside guidance for FY 2014, lowering EPS to $2.60-$2.75 from a prior forecast of $2.90-$3.05 and $2.97 analyst consensus; expects total sales growth of 12%-13% vs. prior 5%-7%, and organic sales growth of 2%-4% vs. prior 4%-6%.
- Related to the acquisition, KMT plans restructuring actions and expects to incur $40M-$50M in pretax charges within the next three years.
Jan. 24, 2013, 9:10 AM
Oct. 24, 2012, 10:47 AM
Kennametal (KMT -5.7%) slides this morning as the maker of metal-cutting tools, and mining and highway construction equipment reported FQ1 results that were below Street expectations and cut its outlook for FY13. Net profit tumbled 36% Y/Y on declining industrial sales, higher costs and tighter margins. The company slashed its view for the year due to weak sales, now expecting total sales growth between 3% and 6%, below its earlier view of between 7% and 10%, and its EPS coming between $3.40 and $3.70.| Oct. 24, 2012, 10:47 AM
Oct. 24, 2012, 9:10 AM
Oct. 15, 2012, 2:10 PM
Titan International (TWI +5.3%) shares are sharply higher after Jefferies raises its rating to Buy from Hold, seeing a favorable risk/reward profile following a recent pullback. The firm views a potential guidance update and more discussion of its Europe acquisition as potential catalysts for TWI; otherwise, it sees earnings and forecast risk in machinery stocks CAT, ETN and KMT.| Oct. 15, 2012, 2:10 PM | 2 Comments
May 14, 2012, 2:58 PM
Kennametal (KMT -2.7%) shares slide after reporting slower April order growth. Demand for the company's drill bits and cutting tools is closely watched since it tends to track industrial and mining activity, but falling demand for U.S. coal is particularly problematic for KMT. "We believe the next six months are likely to prove challenging for KMT," William Blair says.| May 14, 2012, 2:58 PM | 1 Comment
Jan. 26, 2012, 3:10 PM
Kennametal (KMT -1%) gives back the day's early gains and more, despite reporting an FQ2 EPS that easily beat estimates on double-digit growth in its aerospace and defense business. The company also raises its outlook for the fiscal year, saying it now expects to post earnings of between $3.70 - $3.90 per share versus a prior forecast of $3.60 - $3.85.| Jan. 26, 2012, 3:10 PM