NEW YORK (TheStreet) -- Shares of Kennametal (KMT) - Get Report are advancing by 4.81% to $24.85 on heavy trading volume late Tuesday afternoon, after the company posted its 2016 fiscal third quarter results.

After yesterday's market close, the Latrobe, PA-based maker of engineered products reported adjusted earnings of 37 cents per share, topping analysts' estimates of 23 cents per share.

Revenue fell by 22% to $497.8 million from last year, but was above Wall Street's forecasts of $487.3 million.

Revenue was impacted by divestiture, declines in organic growth and unfavorable currency exchange.

Adjusted operating margins were boosted by sequential volume growth and lower raw material costs, the company said.

"Kennametal's third quarter performance reflects progress from operating results in a challenging environment, and benefited from a favorable tax rate," CEO Ron De Feo said in a statement.

For fiscal 2016, the company now expects earnings per share between $1.05 and $1.15, up from its previous guidance for earnings per share in the range of 85 cents to $1.05.

About 1.85 million of Kennametal's shares changed hands by late this afternoon compared to its average volume of 1.03 million shares per day.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.

The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: KMT

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