Fool Checkup: KEMET Earnings

KEMET (NYSE: KEM  ) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), KEMET met expectations on revenues and exceeded expectations on earnings per share.

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

Gross margins dropped, operating margins shrank, net margins grew.

Revenue details
KEMET reported revenue of $200.3 million. The six analysts polled by S&P Capital IQ expected revenue of $200.6 million on the same basis. GAAP reported sales were 8.5% lower than the prior-year quarter's $218.8 million.

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 -$0.05. The five earnings estimates compiled by S&P Capital IQ anticipated -$0.18 per share. GAAP EPS were -$0.32 for Q3 compared to -$0.62 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 17.1%, 140 basis points worse than the prior-year quarter. Operating margin was 1.0%, 290 basis points worse than the prior-year quarter. Net margin was -7.1%, 560 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $206.3 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $846.5 million. The average EPS estimate is -$0.41.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 120 members out of 126 rating the stock outperform, and six members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 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 $6.63.

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