Key Tronic (NASDAQ:KTCC) Posts Earnings Results

Key Tronic (NASDAQ:KTCC) posted its quarterly earnings data on Tuesday. The technology company reported ($0.72) earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of $98.68 million for the quarter. Key Tronic had a negative return on equity of 14.11% and a negative net margin of 13.72%.

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

• Q1 performance deteriorated materially: revenue was $98.7 million, gross margin fell to 2.5% from 8.4%, and net loss widened to $7.5 million, or $0.69 per share. Approximately $18 million of shipments were delayed by supply-chain financing constraints.
• Demand remains strong, with backlog up 76% year over year to $245.9 million; management said a growing share consists of firm purchase orders rather than forecasts. Six new program awards represent more than $60 million in potential annual revenue.
• The company is streamlining its U.S. workforce, expected to reduce annual labor costs by approximately $8 million, with most savings implemented recently and the full benefit expected by January. Management expects operating leverage to improve as revenue recovers.
• Key Tronic is pursuing additional financing tied to its Mexico and Vietnam assets, but suppliers are increasingly requiring upfront cash and the company is using roughly 90% of its lending availability. It provided no second-quarter guidance, citing uncertain program ramps and capital constraints.
• Management expects revenue growth and a return to profitability in the second half of fiscal 2027, supported by expanding Vietnam operations, customer-funded or consigned materials and equipment, and demand for North American and diversified manufacturing.

Key Tronic Trading Down 11.3%

Shares of KTCC traded down $0.17 during mid-day trading on Thursday, reaching $1.29. The company had a trading volume of 89,381 shares, compared to its average volume of 20,747. The stock has a market cap of $14.34 million, a price-to-earnings ratio of -0.26 and a beta of 1.18. The company has a current ratio of 2.10, a quick ratio of 1.20 and a debt-to-equity ratio of 1.50. The firm has a fifty day simple moving average of $2.29 and a 200-day simple moving average of $3.06. Key Tronic has a fifty-two week low of $1.25 and a fifty-two week high of $4.42.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Susquehanna International Group LLP acquired a new position in shares of Key Tronic in the 2nd quarter valued at about $57,000. Bank of New York Mellon Corp purchased a new position in Key Tronic in the second quarter valued at approximately $95,000. BlackRock Inc. purchased a new position in Key Tronic in the second quarter valued at approximately $533,000. Sei Investments Co. lifted its position in Key Tronic by 105.7% during the first quarter. Sei Investments Co. now owns 345,650 shares of the technology company’s stock valued at $944,000 after buying an additional 177,591 shares in the last quarter. Finally, Tieton Capital Management LLC acquired a new position in Key Tronic during the second quarter valued at approximately $3,143,000. Institutional investors and hedge funds own 40.69% of the company’s stock.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reiterated a “sell (d-)” rating on shares of Key Tronic in a research report on Thursday, October 15th. One analyst has rated the stock with a Sell rating. According to MarketBeat.com, Key Tronic presently has a consensus rating of “Sell”.

Key Tronic Company Profile

Key Tronic Corporation is an electronic manufacturing services provider headquartered in Spokane Valley, Washington. The company designs, manufactures, and assembles electronic and mechanical products for original equipment manufacturers and other industrial customers.

Its services include product design and engineering, printed circuit board assembly, system integration, plastics molding, metal stamping, tooling, materials management, and supply-chain support. Key Tronic produces a range of finished and subassembled products used in markets such as industrial, automotive, medical, aerospace and defense, computer, and consumer electronics.

Founded in 1969, Key Tronic initially became known for manufacturing computer keyboards before expanding into broader contract manufacturing and product development services.