The 10-second takeaway
For the quarter ended June 30 (Q1), KEMET met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP loss per share grew. GAAP loss per share grew.
Margins dropped across the board.
KEMET notched revenue of $202.7 million. The six analysts polled by S&P Capital IQ expected to see revenue of $205.4 million on the same basis. GAAP reported sales were 9.3% lower than the prior-year quarter's $223.6 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 -$0.38. The six earnings estimates compiled by S&P Capital IQ averaged -$0.22 per share. Non-GAAP EPS were -$0.38 for Q1 versus -$0.20 per share for the prior-year quarter. GAAP EPS were -$0.78 for Q1 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 8.6%, 580 basis points worse than the prior-year quarter. Operating margin was -7.6%, 660 basis points worse than the prior-year quarter. Net margin was -17.3%, 940 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $211.3 million. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $846.3 million. The average EPS estimate is -$0.30.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 114 members out of 122 rating the stock outperform, and eight members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give KEMET a green thumbs-up, and four 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 $5.50.
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