3. Kennametal (KMT - Get Report) is a leading supplier of tooling, engineered components and advanced materials used in production processes. The company operates in two segments: Metalworking Solutions and Services Group (MSSG) and Advanced Materials Solutions Group (AMSG).
For the third quarter of 2011, the company reported earnings per share of 77 cents as compared to 12 cents in the prior-year period. Sales for the current quarter increased to $615 million from $493 million earlier with 25% growth from organic business. Operating margins touched all-time highs of 15.2% while Return on Invested Capital soared to a record 12.9%. Dividend payout for the third quarter was 12 cents per share, on May 25, 2011.
The company has raised its guidance for full year 2011 and now expects organic sales growth of 24% to 25% compared to the earlier range of 21% to 24%. Earnings per share forecast between $2.75 and $2.85, topping the previous guidance of $2.50 to $2.65.Of the 13 analysts covering the stock, 54% recommend a buy and the rest rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 26.4% to $49.00 in the upcoming 12 months.
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