KEMET Meets on the Top Line, Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

KEMET (NYS: KEM) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q4), KEMET met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP loss per share grew. GAAP loss per share grew.


Gross margins expanded, operating margins dropped, net margins dropped.

Revenue details
 KEMET notched revenue of $203.0 million. The six analysts polled by S&P Capital IQ expected sales of $201.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at -$0.22. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.08 per share. Non-GAAP EPS were -$0.22 for Q4 versus -$0.16 per share for the prior-year quarter. GAAP EPS were -$0.53 for Q4 against -$0.26 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 13.4%, 50 basis points better than the prior-year quarter. Operating margin was -7.8%, 360 basis points worse than the prior-year quarter. Net margin was -11.8%, 620 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $215.8 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $880.7 million. The average EPS estimate is $0.37.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 116 members out of 122 rating the stock outperform, and six members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give KEMET a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KEMET is hold, with an average price target of $6.25.

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The article KEMET Meets on the Top Line, Misses Where it Counts originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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