What caused KMT's EPS surprises in recent quarters?

Kennametal's (KMT) EPS has experienced a surprise of -$0.01 for the most recent quarter ending on December 31, 2024, compared to the previous quarter's EPS of $0.28. The company's EPS has been impacted by several factors:

|code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|KMT|KMT.N|Kennametal|2024 Q3|0|0.24|169|
|KMT|KMT.N|Kennametal|2024 Q4|0.03||169|
|KMT|KMT.N|Kennametal|2025 Q1|0.03|0.28|169|
|KMT|KMT.N|Kennametal|2025 Q2|-0.01|0.23|169|

1. **Strategic Share Repurchases**: Kennametal has been actively repurchasing shares, with $15 million bought back in the latest quarter. Share repurchases can boost EPS by reducing the number of shares outstanding, making the remaining shares more valuable.
2. **Improved Cash Flow**: The company has reported the highest free operating cash flow since 2015, which is a positive indicator for its financial health and suggests better profitability.

Despite these positive factors, the recent dip in sales and margins has put pressure on Kennametal's EPS. However, the company's resilience in navigating challenges with strategic adaptations and its strong cash flow provide a foundation for future performance.