2024-01-25 17:55:32 ET
Summary
- Kennametal's gross margin performance in Q1 exceeded expectations, indicating strength in the company's fundamental trends.
- Management is confident in the long-term drivers of the business, with expected growth in end markets and a solid margin story.
- The upcoming Q2 earnings report will provide insight into management's view of the company's end markets for the remainder of fiscal 2024.
Intro
We wrote about Kennametal Inc. ( KMT ) back in October of last year when we looked at the company's valuation through the lens of Kennametal's dividend metrics. At the time, we found KMT to be overvalued from the dividend discount formula we used due to an expected high cost of equity as well as a muted dividend growth rate overall. Furthermore, significant overhead technical resistance led us to stamp a 'Sell' rating on the stock....
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For further details see:
Kennametal: Better Pricing Boosts Gross Margin And Compensates For Lower Demand