KEMET Earnings: Here’s Why Shares are Down Now

KEMET Corp. (NYSE:KEM) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.34%.

KEMET Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.38 in the quarter versus EPS of $-0.20 in the year-earlier quarter.

Revenue: Decreased 9.35% to $202.72 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: KEMET Corp. reported adjusted EPS loss of $0.38 per share. By that measure, the company missed the mean analyst estimate of $-0.22. It missed the average revenue estimate of $205.35 million.

Quoting Management: “Revenue was right on forecast and indicators point to a slight increase in our second quarter. This quarter saw the full impact on our financial results of the raw material supply chain disruption that occurred in our last quarter. However, we have corrections underway and this area is under our control,” stated Per Loof, KEMET’s Chief Executive Officer. “I expect to see good improvement in our operating margins this next quarter as we get our Tantalum raw material supply back on track and our European business rolls into its final stage of reorganizing into low-cost countries. A little assistance from an improving economy would be appreciated, but we expect a significant positive change to our financial results this fiscal year even with the economy just moving sideways,” continued Loof.

Key Stats (on next page)…

Revenue decreased 0.15% from $203.03 million in the previous quarter. EPS decreased to $-0.38 in the quarter versus EPS of $-0.22 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.07 to a loss $0.11. For the current year, the average estimate has moved down from a profit of $0.37 to a loss of $0.3 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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