KTCC Earnings Prediction
The chart below shows how KTCC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KTCC sees a +1.99% change in stock price 10 days leading up to the earnings, and a +3.74% change 10 days following the report. On the earnings day itself, the stock moves by +0.18%. This data can give you a slight idea of what to expect for the next quarter's release.
KTCC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
113.85M
-22.99%
-13.46%
Gross Margin
6.77%
-14.95%
-33.04%
Operating Margin
-0.98%
-136.70%
-128.99%
Net Margin
-4.32%
-691.78%
-608.24%
EPS
-0.46
-560.00%
-560.00%
No Data Available
KTCC Earnings Analysis
Key Tronic Corp Corporation (KTCC.O) Earnings Conference Call
Positive
Revenue Comparison FY2024 vs FY2025: Total revenue for the first six months of fiscal year 2025 was $245,400,000, demonstrating a strong performance despite challenges, compared to $298,000,000 in the same period of fiscal year 2024.
Asset-Based Financing Agreement: The new asset-based financing agreement provides up to $115,000,000 of available credit, with $76,000,000 borrowed, enhancing liquidity and supporting long-term growth plans.
Inventory Reduction Strategy: Inventory was reduced by approximately $23,000,000 or 19% year-over-year, reflecting effective inventory management and alignment with current revenue levels.
Liabilities Reduction Impact: Total liabilities decreased by $38,000,000 or 15% from a year ago, indicating improved financial health and stability.
Aerospace Program Revenue Potential: A new aerospace program is expected to generate annual revenue exceeding $60,000,000, representing a significant growth opportunity and expansion of the customer base.
Negative
Revenue Decline Analysis: Total revenue decreased to $113.9 million in Q2 FY25 from $147.8 million in Q2 FY24, reflecting a decline of approximately $33.9 million year-over-year due to component shortages and reduced customer demand.
Margin Compression Analysis: Gross margins fell to 6.8% in Q2 FY25 from 8.0% in Q2 FY24, while operating margins turned negative at -1.0% compared to 2.7% in the prior year, indicating significant margin compression due to lower revenue.
Net Loss Comparison: Net loss for Q2 FY25 was $4.9 million or $0.46 per share, a stark contrast to net income of $1.1 million or $0.10 per share in Q2 FY24, highlighting a substantial deterioration in profitability.
Adjusted Net Loss Analysis: Adjusted net loss was $4.1 million or $0.38 per share in Q2 FY25, compared to adjusted net income of $1.1 million or $0.10 per share in Q2 FY24, further emphasizing the negative financial impact of operational challenges.
Increased Accounts Receivable Days: Accounts receivable days sales outstanding (DSOs) increased to 99 days in Q2 FY25 from 83 days in Q2 FY24, indicating slower collection of receivables amid declining sales.
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KTCC Earning Call Sentiment
Earnings call transcript: Key Tronic reports Q2 2025 loss, stock dips
KTCC.O
2.68%Positive
The earnings call reveals declining financial performance, with reduced revenue, margins, and net income turning into losses. Despite some positive signs like inventory reduction and a promising aerospace opportunity, uncertainties about component shortages, tariffs, and lack of clear guidance weigh heavily. The Q&A section highlights concerns over demand and profitability, with management's vague responses further dampening sentiment. Without strong positive catalysts or clear guidance, the stock is likely to experience a negative reaction.
