Kemet: Here’s What Investors Need to Know Before Earnings

Kemet (NYSE:KEM) will report earnings before markets open on Thursday, July 25th. KEMET Corporation manufactures and sells solid tantalum and multilayer ceramic capacitors. The Company’s products are used in a wide variety of electronic applications, including communication systems, data processing equipment, personal computers, and military and aerospace systems. KEMET markets its capacitors to original equipment manufacturers around the world.

Here is your Cheat Sheet to Kemet Earnings:

Earnings Expectations: Analysts expect earnings of $-0.22 per share on revenues of $205.35 million.

Analyst Trends:

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 is a loss of $0.3, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Kemet has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 804 736 1,018 985 843
Diluted EPS ($) -10.32 -2.58 1.22 0.00 -1.80

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 223.63 215.99 200.30 203.03
Diluted EPS ($) -0.40 -0.55 -0.32 -0.53

Past Performance:
Kemet has missed analyst estimates 3 times in the past four quarters. Shareholders could expect a bust if the company misses estimates.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

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