Key Tronic (NASDAQ:KTCC) Announces Quarterly Earnings Results

Key Tronic (NASDAQ:KTCC) issued its quarterly earnings data on Tuesday. The technology company reported ($0.72) earnings per share for the quarter, FiscalAI reports. The company had revenue of $98.68 million for the quarter. Key Tronic had a negative net margin of 12.36% and a negative return on equity of 7.05%.

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 Stock Performance

NASDAQ:KTCC opened at $1.84 on Wednesday. The company has a debt-to-equity ratio of 1.50, a current ratio of 2.10 and a quick ratio of 1.20. The company has a market cap of $20.40 million, a price-to-earnings ratio of -0.41 and a beta of 1.18. Key Tronic has a 1 year low of $1.89 and a 1 year high of $4.42. The stock’s 50 day simple moving average is $2.33 and its two-hundred day simple moving average is $3.07.

Wall Street Analysts Forecast Growth

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

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Susquehanna International Group LLP bought a new position in Key Tronic in the second quarter worth approximately $57,000. Tieton Capital Management LLC purchased a new stake in shares of Key Tronic during the second quarter worth about $3,143,000. BlackRock Inc. purchased a new stake in shares of Key Tronic during the second quarter valued at $533,000. Bank of New York Mellon Corp acquired a new stake in Key Tronic during the 2nd quarter valued at approximately $95,000. Finally, Sei Investments Co. grew its holdings in Key Tronic by 105.7% during the first quarter. Sei Investments Co. now owns 345,650 shares of the technology company’s stock worth $944,000 after acquiring an additional 177,591 shares during the period. Institutional investors own 40.69% of the company’s stock.

About Key Tronic

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.