Earnings Outlook for Kennametal

On Monday, May 03, Kennametal KMT will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts expect Kennametal earnings of $0.2 per share. Revenue will likely be around $472.38 million, according to the consensus estimate. In the same quarter last year, Kennametal announced EPS of $0.46 on revenue of $483.08 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Monday, quarterly profit would be down 56.52%. Sales would have fallen 2.22% from the same quarter last year. Here is how the Kennametal's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Kennametal were trading at $41.01 as of April 29. Over the last 52-week period, shares are up 81.25%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Kennametal is scheduled to hold the call at 08:00:00 ET and can be accessed here.