Kennametal Inc. (KMT) saw its stock price decline by 3.37% on February 5, 2025, closing at $22.67 after opening at $21.59. The stock hit a 52-week low of $20.50 during the day, driven by a disappointing Q2 earnings report that missed analyst expectations. The company reported a decrease in adjusted EPS to $0.25 from $0.30 y/y and a 3% drop in revenue to $482 million. The market reacted negatively to the revised full-year guidance, with sales now projected between $1.95 billion and $2.0 billion, down from previous estimates. The adjusted EPS forecast was also cut to a range of $1.05 to $1.30, below the prior range of $1.30 to $1.70. These adjustments reflect challenging market conditions, particularly in the EMEA region, and the need for further restructuring actions.
The trading volume for KMT was significantly higher than average, at 1,844,146 shares, more than double the typical daily volume. This heightened activity underscores investor concern over the company's reduced outlook and the broader implications of its earnings miss. Despite an improvement in operating income margin to 6.6% from 5.7% y/y, the overall sentiment remained bearish, as reflected in the stock's performance.