Key Tronic Prelim. Q2 Revenue, Earnings Misses Expectations; Plans Lay Offs In Q3; Stock Down

(RTTNews) - Key Tronic Corp. (KTCC), Friday announced second-quarter preliminary results, reporting revenue and earnings below the previously estimated guidance.

For the quarter, the contract manufacturer projects revenue of around $114 million and earnings of approximately $0.40 to $0.48 per share.

Key Tronic noted that the decline in quarterly revenue and earnings was primarily due to the impact from unexpected component shortages, lower-than-expected production during the holiday season, and reduced demand from certain customers.

However, the company expects revenue and earnings to recover in the third quarter with revenue estimated to be between $115 million and $130 million, and earnings between $0.00 and $0.15 per share.

For better results in the upcoming quarter, Key Tronic is streamlining its operations and planning to cut workforce to enhance efficiency.

Currently, Key Tronic's stock is trading at $3.94, down 5.51 percent on the Nasdaq.