Earnings Preview for Kennametal

Kennametal KMT releases its next round of earnings this Monday, February 01. Here is Benzinga's essential guide to Kennametal's Q2 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts predict Kennametal will report earnings of $0.09 per share on revenue of $423.61 million. In the same quarter last year, Kennametal reported EPS of $0.17 on revenue of $505.08 million.

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

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 47.06% decrease in the company's earnings. Sales would be down 16.13% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Stock Performance

Shares of Kennametal were trading at $38.62 as of January 28. Over the last 52-week period, shares are up 22.33%. Given that these returns are generally positive, long-term shareholders are probably 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.