Key Tronic (NASDAQ:KTCC) Releases Earnings Results

Key Tronic (NASDAQ:KTCC) announced its quarterly earnings results on Tuesday. The technology company reported ($0.26) earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of $89.57 million during the quarter. Key Tronic had a negative net margin of 4.40% and a negative return on equity of 7.08%.

Here are the key takeaways from Key Tronic’s conference call:

• The company reported Q3 revenue of $89.6 million versus $112 million a year ago and a net loss of $2.6 million (adjusted net loss $2.8 million), with year?to?date losses widening as demand from legacy customers and an end?of?life program declined.
• Management highlighted improved operating efficiency with gross margin up to 8.0% (adjusted 8.5%) and slight operating margin improvement, attributing this to cost?cutting initiatives that should boost margins as volume returns.
• Key Tronic is completing a wind?down of China manufacturing by year?end and shifting production to the U.S. and Vietnam, expected to generate roughly $1.2 million in quarterly savings once fully executed while retaining a small China sourcing team.
• Balance?sheet metrics improved modestly with inventory down ~14% (~$13.5M), DSO improving to 85 days, ~$10M YTD cash from operations, and debt reduced by about $14.3 million; full?year CapEx is expected to be modest ($5M–$8M).
• Management did not provide Q4 guidance due to macro and ramp timing uncertainty, though they expect sequential revenue growth and a potential return to profitability in Q4 supported by a growing pipeline and recent program wins across automotive, industrial, pest control, and power management.

Key Tronic Stock Down 0.6%

Key Tronic stock traded down $0.02 during mid-day trading on Thursday, reaching $3.19. 5,947 shares of the company were exchanged, compared to its average volume of 12,239. The business has a fifty day moving average of $2.81 and a 200 day moving average of $2.83. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.17 and a current ratio of 2.03. The firm has a market cap of $34.64 million, a P/E ratio of -1.99 and a beta of 1.16. Key Tronic has a 12-month low of $2.22 and a 12-month high of $3.70.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings restated a “sell (d-)” rating on shares of Key Tronic in a report on Tuesday, April 21st. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat, Key Tronic currently has a consensus rating of “Sell”.

Institutional Trading of Key Tronic

Hedge funds and other institutional investors have recently made changes to their positions in the business. Goldman Sachs Group Inc. lifted its holdings in shares of Key Tronic by 65.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 23,480 shares of the technology company’s stock valued at $61,000 after purchasing an additional 9,327 shares during the last quarter. Bensler LLC purchased a new stake in shares of Key Tronic during the 3rd quarter valued at $109,000. Finally, Moors & Cabot Inc. lifted its holdings in shares of Key Tronic by 27.8% during the 3rd quarter. Moors & Cabot Inc. now owns 162,950 shares of the technology company’s stock valued at $582,000 after purchasing an additional 35,400 shares during the last quarter. Hedge funds and other institutional investors own 40.69% of the company’s stock.

About Key Tronic

Key Tronic Corporation (NASDAQ: KTCC) is a global electronics manufacturer headquartered in Spokane, Washington. The company specializes in the design, development and production of human-machine interfaces and input devices, with a core legacy in keyboard technology. Over more than five decades, Key Tronic has expanded its capabilities beyond keyboards to encompass a broad range of electronic assemblies for OEMs across computing, industrial, medical and consumer markets.

Key Tronic’s product portfolio includes membrane and mechanical keyboards, touch panels, silicone keypads and custom input solutions tailored to customer specifications.