NEW YORK (TheStreet) -- Shares of Kennametal (KMT) were gaining 6.5% to $38.50 on heavy trading volume Tuesday after the industrial materials supplier beat analysts' estimates for earnings in the fiscal third quarter.
Kennametal reported earnings of 46 cents a share for the third quarter, above analysts' estimates of 44 cents a share for the quarter. Revenue fell 15.4% year over year to $638.97 million for the quarter, below analysts' estimates of $645.56 million.
Industrial segment sales fell 11% to $355 million for the third quarter, down from $400 million in the year-ago quarter.
Kennametal tightened its EPS estimates for fiscal year 2015 to a range of $1.95 to $2.05 a share from its previous range of $1.90 to $2.10 a share. Analysts expect the company to report earnings of $1.96 a share for the fiscal year.
About 1.3 million shares of Kennametal were traded by 10:32 a.m. Monday, above the company's average trading volume of about 743,000 shares a day.
TheStreet Ratings team rates KENNAMETAL INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KENNAMETAL INC (KMT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
You can view the full analysis from the report here: KMT Ratings Report