The 10-second takeaway
For the quarter ended Sep. 30 (Q2), KEMET missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
KEMET notched revenue of $216.0 million. The six analysts polled by S&P Capital IQ anticipated revenue of $223.9 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $265.5 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 -$0.14. The five earnings estimates compiled by S&P Capital IQ forecast -$0.09 per share. GAAP EPS were -$0.55 for Q2 against $0.27 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 15.2%, 820 basis points worse than the prior-year quarter. Operating margin was -0.9%, 1,090 basis points worse than the prior-year quarter. Net margin was -11.5%, 1,690 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $228.1 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $901.5 million. The average EPS estimate is $0.04.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 120 members out of 126 rating the stock outperform, and six members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give KEMET a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KEMET is hold, with an average price target of $8.75.
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