The 10-second takeaway
For the quarter ended March 31 (Q4), KEMET beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank to a loss.
Margins shrank across the board.
KEMET booked revenue of $210.7 million. The six analysts polled by S&P Capital IQ predicted revenue of $205.9 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $261.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.16. The five earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.26 for Q4 against $0.40 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.9%, 1,100 basis points worse than the prior-year quarter. Operating margin was -4.2%, 1,560 basis points worse than the prior-year quarter. Net margin was -5.6%, 1,370 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $220.9 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $949.4 million. The average EPS estimate is $0.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 121 members out of 125 rating the stock outperform, and four members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give KEMET a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KEMET is outperform, with an average price target of $12.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.