Kennametal (NYSE: KMT) reported Q4 EPS of $0.53, $0.13 better than the analyst estimate of $0.40. Revenue for the quarter came in at $515.97 million versus the consensus estimate of $514.21 million.

Today the Company announced that its Board of Directors authorized a share repurchase program. Under this program, the Company intends to repurchase up to $200 million of Kennametal common stock. The Company expects to fund repurchases through cash generated from operations.

"We ended fiscal 2021 with positive momentum driven by solid execution of our strategic Commercial and Operational Excellence initiatives and continued recovery in our end-markets. Sales increased 6 percent sequentially and 36 percent year-over-year, with notable sequential improvement in General Engineering and Aerospace end-markets. In the quarter, we achieved strong operating leverage, free operating cash flow and 400 basis points of adjusted operating margin improvement year-over-year despite approximately 1,200 basis points of headwinds from prior year temporary cost controls," said Christopher Rossi, President and CEO. "Our performance this year demonstrates continued success in transforming the Company, including achieving our simplification/modernization savings target and positioning the Company to deliver strong operating leverage and free operating cash flow at approximately 100 percent of adjusted net income. Looking ahead, we are confident in our growth and profitability strategy and will continue to invest in the business to further those initiatives. We also announced today a share repurchase program of up to $200 million over the next three years, yet another sign of our confidence in the strategy," Rossi added.

GUIDANCE:

The Company's expectations for the first quarter of fiscal 2022 and the full year are as follows:

Quarterly Outlook

Sales are expected to outpace normal seasonality; up 17 - 22 percent compared to the prior year quarter
Cost headwinds of approximately $15 million from prior year temporary cost controls

Annual Outlook

• Strong operating leverage for the full year
• First half headwinds from prior year temporary cost controls of approximately $25 million
• Free operating cash flow at approximately 100 percent of adjusted net income
• Capital spending is expected to be $110 - $130 million
• Primary working capital trending toward 30 percent of sales by year-end
• Adjusted ETR expected to be 25 - 28 percent

The Company will provide more details regarding its fiscal 2022 assumptions on its conference call.

For earnings history and earnings-related data on Kennametal (KMT) click here.