Kemet Corporation (KEM) Tops Q3 EPS by 10c, Revenues Beat

Kemet Corporation (NYSE: KEM) reported Q3 EPS of $0.46, $0.10 better than the analyst estimate of $0.36. Revenue for the quarter came in at $294.7 million versus the consensus estimate of $292.43 million.

Third Quarter Highlights

• Net sales of $294.7 million within the upper range of Management's guidance
• GAAP Gross margin of 31.6%
• GAAP EPS of $0.28 per diluted share
• Non-GAAP Adjusted EPS of $0.46 per diluted share
• GAAP Operating margin of 9.7% and non-GAAP Adjusted operating margin of 13.7%

"Our overall non-GAAP adjusted gross margin and adjusted EBITDA margin remained strong at 31.9% and 19.3%, respectively, during the third fiscal quarter, despite a decrease in sales due to the general slow-down in the electronics industry and distribution inventory corrections. These strong margins are further proof that the structural changes we have made in our operations are firmly ingrained in our margin structure. We are collaborating with our distribution partners to further decrease inventory in the channel during our fourth fiscal quarter. Closer alignment of end-customer demand with our shipments should enable us to create opportunities for revenue growth as we enter our next fiscal year in April,” stated William M. Lowe Jr., KEMET’s Chief Executive Officer. “We are closely monitoring the Coronavirus situation as it impacts our China facilities and we are conforming to the regulations imposed by the governmental authorities for the timing of employees returning back to work with the extension of the New Year's holiday. It is too early to know whether it will have a measurable impact to our fourth fiscal quarter revenue,” continued Lowe.

For earnings history and earnings-related data on Kemet Corporation (KEM) click here.

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