Key Tronic (NASDAQ:KTCC) Stock, Quote.Headers.trade-ideas

Key Tronic

Key Tronic Corp is an electronic manufacturing service provider. The company provides electronic manufacturing services to original equipment manufacturers in the United States and globally. Its primary services include integrated electronic and mechanical engineering, precision plastic molding, sheet metal fabrication, printed circuit board (PCB) and complete product assembly, component selection, sourcing and procurement, logistics, and new product testing and production. The firm derives a majority of its revenue from the United States.

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Key Tronic Corporation&#39;s (NASDAQ: KTCC) fourth-quarter fiscal 2024 results reflected significant impacts of a cybersecurity incident that disrupted its operations, leading to mixed performance.

Key Tronic Posts Break-Even Earnings, Y/Y Revenue Dip in Q4

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Key Tronic Corp

Key Tronic Corporation&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ktcc#NASDAQ">KTCC</a>) fourth-quarter fiscal 2024 results reflected significant impacts of a cybersecurity incident that disrupted its operations, leading to mixed performance. The company faced notable challenges, including a sharp year-over-year decline in revenues and break-even earnings, stemming from its inability to fulfill orders during the quarter.
However, strategic cost-cutting measures, including workforce reductions and favorable currency fluctuations, provided some relief. As the company navigates the aftermath of the cyberattack, management&#39;s outlook for the first quarter of fiscal 2025 suggests a recovery, with an anticipated boost in revenues and earnings as Key Tronic continues to capitalize on business opportunities and operational efficiencies.
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<h3>Key Tronic Corporation Price, Consensus and EPS Surprise</h3>
<img alt="Key Tronic Corporation Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/ab/1723645981.png" style="height:265px; width:531px" title="" />
Key Tronic Corporation price-consensus-eps-surprise-chart | Key Tronic Corporation Quote
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<h3>Q4 Results</h3>
KTCC reported fourth-quarter fiscal 2024 break-even earnings per share, declining from 10 cents in the year-ago quarter.
Total quarterly revenues were $125.7 million, a significant decline from $162.6 million in the prior-year quarter.
Weak quarterly earnings primarily resulted from the inability to fulfill approximately $15 million in orders during the quarter as a result of the cyberattack. The negatives were partially offset by lower operating expenses, aided by workforce reductions in Mexico and favorable currency fluctuations.
<h3>Key Business Metrics</h3>
Net income for fourth-quarter fiscal 2024 was break-even, whereas it reported $1.1 million in fourth-quarter fiscal 2023. This decline reflects increased cybersecurity-related expenses, offset partially by an insurance gain and the weakening of the Mexican Peso, which reduced expenses.
Adjusted net income, which excludes certain one-time expenses, was $1.1 million, up slightly from $1 million in fourth-quarter fiscal 2023.
The company maintained a gross margin of 9% for fourth-quarter fiscal 2024, slightly up from 8.5% in the prior-year quarter, aided by workforce reductions in Mexico and favorable currency fluctuations.
Operating income for the quarter was $2.7 million, down from $4.2 million in the prior-year period. This decline was driven by lower revenues and higher operating expenses, including cybersecurity costs.
<h3>Expenses</h3>
The company saw a decrease in total operating expenses to $8.6 million from $9.7 million in the prior-year quarter.
However, interest expenses rose to $3.2 million from $2.9 million in fourth-quarter fiscal 2023, further pressuring the bottom line. The company reported a slight tax benefit in fourth-quarter fiscal 2024, which helped mitigate the overall net loss for the full fiscal year.
<h3>Cash &amp; Debt</h3>
Key Tronic ended fourth-quarter fiscal 2024 with cash and cash equivalents of $4.8 million, up from $3.6 million at the end of fourth-quarter fiscal 2023.
Net long-term debt stood at $116.4 million as of Jun 29, 2024, a decrease from $121.5 million a year earlier.
<h3>Management Guidance</h3>
Key Tronic projects first-quarter fiscal 2025 revenues of $140-$150 million and earnings per diluted share between 10 cents and 20 cents. This outlook assumes a continued recovery from the cybersecurity incident and a gradual improvement in production efficiencies, particularly in its Mexico operations. Management is optimistic about a strong pipeline of new businesses, driven by trends in on-shoring and dual sourcing of contract manufacturing, positioning it for growth in the upcoming fiscal year.
<h3>Other Developments</h3>
In the fiscal fourth quarter, Key Tronic continued to expand its customer base, securing new programs across various sectors, including industrial moving equipment, medical devices and consumer products. The company also emphasized its strategic shift toward on-shoring and dual sourcing, particularly in its Mexico, U.S. and Vietnam facilities. This trend is expected to support growth and enhance operational resilience.
In summary, while the cyberattack posed significant challenges, Key Tronic&#39;s proactive response and ongoing strategic initiatives position it for recovery and growth in the upcoming fiscal year. Investors should monitor the execution of the company&#39;s recovery plans and the realization of anticipated operational efficiencies.
<h3>View</h3>
The fiscal fourth-quarter results were heavily influenced by external disruptions, most notably a cyberattack that affected the company&#39;s operations in Mexico and the United States. The incident led to $2.3 million in additional expenses, including costs related to new IT infrastructure and continued wage payments during the disruption. However, management has noted that most of the unfulfilled orders are expected to be recovered in fiscal 2025.
<a href="https://www.zacks.com/stock/news/2322185/key-tronic-ktcc-posts-break-even-earnings-y-y-revenue-dip-in-q4?cid=CS-BENZ-FT-analyst_blog|earnings_article-2322185">To read this article on Zacks.com click here.</a>

WIIM

Key Tronic shares are trading higher after the company reported a year-over-year increase in Q4 adjusted EPS results.

Key Tronic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTCC#NASDAQ">KTCC</a>) reported quarterly earnings of $0.10 per share. This is a 11.11 percent increase over earnings of $0.09 per share from the same period last year. The company reported $125.69 million in sales this quarter. This is a 22.71 percent decrease over sales of $162.61 million the same period last year.

Key Tronic Q4 Adj. EPS $0.10 Up From $0.09 YoY, Sales $125.69M Down From $162.61M YoY

Key Tronic Q4 2024 Revenue $125.7M Vs $162.6M YoY

Key Tronic Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTCC#NASDAQ">KTCC</a>), a provider of electronic manufacturing services (EMS), today announced its preliminary results for the fourth quarter of fiscal year ended June 29, 2024. &nbsp;
As previously disclosed, Key Tronic detected a cybersecurity incident on May 6, 2024 that caused disruptions and limited access to portions of the Company's business applications supporting operations and corporate functions, including financial and operating reporting systems, at its Mexico and U.S. sites during the fourth quarter of fiscal 2024.
During the disruption of business, Key Tronic continued to pay wages in accordance with statutory requirements. The Company also deployed new IT-related infrastructure and engaged cyber security experts to remediate the incident. Due to this event, the Company incurred approximately $2.3 million of additional expenses and believes that it lost approximately $15 million of revenue during the fourth quarter. Most of these orders are recoverable and are expected to be fulfilled in fiscal year 2025. Partially offsetting these additional expenses was an insurance gain in the amount of $0.7 million that was also recorded during the quarter.
As a result, Key Tronic expects to report revenue of approximately $125 million for the fourth quarter of fiscal 2024, and a net loss of approximately $0.00 per share, both of which are below previous guidance.
Key Tronic expects revenue and earnings to rebound in the first quarter of fiscal year 2025 as production has resumed across its facilities. In addition, the Company is beginning to realize operational efficiencies as a result of headcount reductions announced in the third quarter of fiscal year 2024, coupled with a favorable weakening in the Mexican Peso to the US dollar of approximately 10% that occurred during June. At the same time, Key Tronic continues to win new programs and reduce inventories to be more in line with current revenue levels.
For the first quarter of 2025, the Company expects to report revenue in the range of $140 million to $150 million and earnings in the range of $0.10 to $0.20 per diluted share.

Key Tronic Preliminary Q4 EPS $0.00; Revenue Of ~$125M; Sees Q1 2025 EPS $0.10-$0.20; Revenue $140M-$150M

The most oversold stocks in the information technology sector presents an opportunity to buy into undervalued companies. `
The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the <a href="https://www.benzinga.com/topic/rsi">RSI is below 30</a>, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>.
Here's the latest list of major oversold players in this sector, having an RSI near or below 30.
<h3 class="wp-block-heading">Key Tronic Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTCC#NASDAQ">KTCC</a>)</h3>
<ul>
<li>On June 20, Key Tronic announced a consulting arrangement with Craig D. Gates. The company's stock fell around 9% over the past month and has a <a href="https://www.benzinga.com/quote/KTCC">52-week low of $3.60</a>.</li>
<li>RSI Value: 29.48</li>
<li>KTCC Price Action: Shares of Key Tronic gained 0.5% to close at $3.72 on Tuesday.</li>
<li><a href="https://pro.benzinga.com/dashboard">Benzinga Pro's real-time newsfeed</a> alerted to latest Key Tronic's news.</li>
</ul>
<h3 class="wp-block-heading">Amplitech Group Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMPG#NASDAQ">AMPG</a>)</h3>
<ul>
<li>On May 30, AmpliTech announced the receipt of notice from Nasdaq regaining compliance. The company's stock fell around 7% over the past month. It <a href="https://www.benzinga.com/quote/AMPG">has a 52-week low</a> of $1.00.</li>
<li>RSI Value: 26.81</li>
<li>AMPG Price Action: Shares of Amplitech Group fell 1% to close at $1.04 on Tuesday.</li>
<li>Benzinga Pro's charting tool helped identify the <a href="https://pro.benzinga.com/dashboard">trend in Amplitech Group's stock</a>.</li>
</ul>
<h3 class="wp-block-heading">Datasea Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DTSS#NASDAQ">DTSS</a>)</h3>
<ul>
<li>On July 3, Datasea announced the closing of $2.25 million registered direct offering. The company's stock fell around 21% over the past five days and has a 52-week <a href="https://www.benzinga.com/quote/DTSS">low of $1.42</a>.</li>
<li>RSI Value: 25.82</li>
<li>DTSS Price Action: Shares of Datasea closed at $2.69 on Tuesday.</li>
<li>Benzinga Pro's signals feature notified of a potential <a href="https://pro.benzinga.com/dashboard">breakout in Datasea shares</a>.</li>
</ul>
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Key Tronic Says Operations And Corporate Functions Have Been Restored, And We Believe That The Unauthorized Third Party No Longer Has Access To The Company's IT Systems; Says Determined That The Threat Actor Accessed And Exfiltrated Limited Data From The Company's Environment, Which Includes Some Personally Identifiable Information

Key Tronic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTCC#NASDAQ">KTCC</a>) reported quarterly losses of $(0.21) per share. This is a 216.67 percent decrease over earnings of $0.18 per share from the same period last year. The company reported $140.53 million in sales this quarter. This is a 14.60 percent decrease over sales of $164.55 million the same period last year.

Key Tronic Q3 EPS $(0.21) Down From $0.18 YoY, Sales $140.53M Down From $164.55M YoY

For the fourth quarter of fiscal 2024, the Company expects to report revenue in the range of $135 million to $145 million and earnings in the range of $0.00 to $0.10 per diluted share.
The revenue and earnings estimates for the third and fourth quarters of fiscal 2024, and the finalization of financial results for the third quarter of 2024, are subject to completion of the Company's quarterly close and review procedures which are still ongoing. The Company plans to report its complete results and host its earnings conference call for the third quarter of fiscal 2024 on May 7, 2024. Details for the conference call have been announced in a separate press release.

Key Tronic Corporation Sees Q4 2024 EPS $0.00-$0.10; Revenue $135M-$145M

Key Tronic Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTCC#NASDAQ">KTCC</a>), a provider of electronic manufacturing services (EMS), today announced its preliminary results for the three months ended March 30, 2024.
For the third quarter of fiscal 2024, Key Tronic expects to report revenue of approximately $140 million, in line with revenue expectations, and a net loss of approximately ($0.18) to ($0.23) per share, which is below expectations.
The lower than expected earnings are primarily a result of severance costs of approximately $3.7 million, or $0.27 per diluted share, as the Company reduced its workforce by over 450 employees in Mexico. Moreover, the severance costs were incurred late in the third quarter, which limited the previously planned payroll expense reductions anticipated in the third quarter. The workforce reduction reflects softening demand for a number of different programs with high labor content and is expected to save more than $10 million annually.
Key Tronic expects production levels from Mexico-based facilities to recover in coming quarters due to recently won programs. The Company does not anticipate needing to increase its net headcount in coming periods, which would reflect significant improvements to operating efficiencies.
During the third quarter of fiscal 2024, Key Tronic's facilities in Mississippi and Arkansas were also offline for approximately two weeks due to severe winter weather events, resulting in unanticipated lost production capacity incurring a loss of contribution margin of approximately $1 million or $0.07 per diluted share. The Company also continued to be adversely impacted by the strengthening of the Mexican Peso by approximately 5% , increasing expenses by approximately $1.5 million or $0.11 per diluted share.

Key Tronic Corporation Announces Preliminary Q3 EPS $(0.18)-$(0.23); Revenue ~$140M; Says Lower Than Expected Earnings Are Primarily A Result Of Severance Costs Of ~$3.7M, Or $0.27 Per Diluted Share, As The Company Reduced Its Workforce By Over 450 Employees In Mexico

Key Tronic Sees Q3 2024 EPS $0.00-$0.15; Revenue $135M-$145M

CORRECTION: Key Tronic Q2 2024 EPS $0.10 Up From $0.09 YoY; Revenue $145.4M Up From $123.7M YoY

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Earnings Scheduled For February 6, 2024

Craig D. Gates, President, CEO  Of Key Tronic , Announced His Retirement Effective June 30, 2024, Brett R. Larsen Was Appointed As His Successor And COO

Key Tronic Corporation Sees Q2 2024 EPS $0.05-0.10; Revenue $135M-$145M

Key Tronic Corporation Q1 2024 EPS $0.03 Down From $0.11 YoY, Revenue $147.8M Up From $137.3M YoY

Key Tronic Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTCC#NASDAQ">KTCC</a>), a provider of electronic manufacturing services (EMS), today announced its preliminary results for the three months ended September 30, 2023.
&nbsp;
For the first quarter of fiscal 2024, Keytronic expects to report revenue of approximately $147.7 million, in line with revenue expectations, and earnings of approximately $0.02 per share, which are below expectations.
The lower than expected earnings are primarily a result of unanticipated severance costs of $0.6 million, or approximately $0.04 to $0.05 per diluted share, as the Company reduced its workforce by over 100 employees in Mexico and in the US. The workforce reduction reflects softening demand for a number of different programs and is expected to save more than $5 million annually. While we expect increased demand for many of these Mexico-based customers towards the second half of fiscal year 2024, we now anticipate production for the previously announced program with a leading power equipment company to resume materially in fiscal 2025 rather than 2024, with a redesigned product.
Keytronic also continues to be adversely impacted by the strength of the Mexican Peso and high interest expense, though we are seeing some gradual improvement with gross margins. At the same time, we continue to win significant new programs and reduce inventories to be more in line with current revenue levels.
For the second quarter of fiscal 2024, the Company expects to report revenue in the range of $135 million to $145 million and earnings in the range of $0.05 to $0.10 per diluted share.
The revenue and earnings estimates for the first and second quarters of fiscal 2024, and the finalization of financial results for the first quarter of 2024, are subject to completion of the Company&#39;s quarterly close and review procedures which are still ongoing. The Company plans to report its complete results and host its earnings conference call for the first quarter of fiscal 2024 on October 31, 2023. Details for the conference call have been announced in a separate press release.

Keytronic Corporation Announces Preliminary Results For Q1 FY24; Expects To Report EPS Of $0.02; Revenue Of $147.7M; Sees Q2 EPS Range Of $0.05-$0.10; Revenue In The Range Of $135M-$145M

<h3>Understanding Value Stocks</h3>
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock. 
<h2>Benzinga Insights has compiled a list of value stocks in the technology sector that may be worth watching:</h2>
<ol>
<li>IBEX (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBEX#NASDAQ">IBEX</a>) - P/E: 9.4</li>
<li>Key Tronic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KTCC#NASDAQ">KTCC</a>) - P/E: 8.89</li>
<li>Canadian Solar (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSIQ#NASDAQ">CSIQ</a>) - P/E: 3.59</li>
<li>ScanSource (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SCSC#NASDAQ">SCSC</a>) - P/E: 8.86</li>
<li>Tingo Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TIO#NASDAQ">TIO</a>) - P/E: 2.28</li>
</ol>
IBEX's earnings per share for Q4 sits at $0.33, whereas in Q3, they were at 0.59. Key Tronic saw a decrease in earnings per share from 0.18 in Q3 to $0.1 now. Most recently, Canadian Solar reported earnings per share at $2.39, whereas in Q1 earnings per share sat at $1.19. This quarter, ScanSource experienced a decrease in earnings per share, which was $0.96 in Q3 and is now $0.76. Most recently, Tingo Group reported earnings per share at $0.18, whereas in Q1 earnings per share sat at $0.33. 
The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.

CSIQ

IBEX

SCSC

A Look Into Technology Sector Value Stocks

The most oversold stocks in the information technology sector presents an opportunity to buy into undervalued companies.
The RSI is a momentum indicator, which compares a stock&#39;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#39;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the <a href="https://www.benzinga.com/topic/rsi"> RSI is below 30.</a>
Here&rsquo;s the latest list of major oversold players in this sector, having an RSI near or below 30.
<h3>DigitalOcean Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/docn#NYSE">DOCN</a>)</h3>
<ul>
<li>DigitalOcean announced it is searching for a new CEO. The company&rsquo;s stock has a <a href="https://www.benzinga.com/quote/DOCN">52-week low of $23.38 </a>.</li>
<li>RSI Value: 29.95</li>
<li>DOCN Price Action: Shares of DigitalOcean gained 2.9% to close at $26.58 on Thursday.</li>
</ul>
<h3>Key Tronic Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ktcc#NASDAQ">KTCC</a>)</h3>
<ul>
<li>Key Tronic reported an increase in quarterly earnings and sales results. &ldquo;We&rsquo;re pleased with our record annual revenue and strong earnings in fiscal 2023, driven by our successful ramp of new programs,&rdquo; said Craig Gates, President and Chief Executive Officer. It <a href="https://www.benzinga.com/quote/KTCC"> has a 52-week low </a> of $4.00.</li>
<li>RSI Value: 28.56</li>
<li>KTCC Price Action: Shares of Key Tronic fell 0.7% to close at $4.44 on Thursday.</li>
</ul>
<h3>Akerna Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kern#NASDAQ">KERN</a>)</h3>
<ul>
<li>On June 14, Akerna entered into a $500,000 securities purchase agreement with a private investor and sold 1m shares of common stock at a price of $0.50/share. The company&rsquo;s stock has a 52-week <a href="https://www.benzinga.com/quote/KERN"> low of $0.26.</a></li>
<li>RSI Value: 26.97</li>
<li>KERN Price Action: Shares of Akerna fell 4.2% to close at $0.2701 on Thursday.</li>
</ul>
<h3>Itron, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/itri#NASDAQ">ITRI</a>)</h3>
<ul>
<li>Itron posted upbeat quarterly results. &quot;Second quarter 2023 results highlight the execution capability of the team as we capitalized on our strong backlog position, improved asset utilization, and improved component availability. The Company&rsquo;s financial performance demonstrates the opportunity for value creation available through improving the resiliency, reliability, and agility of the global grid,&quot; said Tom Deitrich, Itron&rsquo;s president and CEO. The company&rsquo;s 52-week low is $39.38.</li>
<li>RSI Value: 28.66</li>
<li>ITRI Price Action: Shares of Itron fell 1.6% to close at $64.33 on Thursday.</li>
</ul>
<h3>TTM Technologies, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ttmi#NASDAQ">TTMI</a>)</h3>
<ul>
<li>TTM Technologies Aerospace &amp; Defense Sector secured a contract from US Army for AN/UPR-4(V) PDRS. The company <a href="https://www.benzinga.com/quote/TTMI"> has a 52-week low </a> of $11.13.</li>
<li>RSI Value: 29.95</li>
<li>TTMI Price Action: Shares of TTM Technologies fell 1.2% to close at $13.55 on Thursday.</li>
</ul>
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Read More: <a href="https://www.benzinga.com/news/earnings/23/09/34349676/fear-greed-index-moves-to-neutral-zone-as-nasdaq-falls-for-4th-session"> Fear &amp; Greed Index Moves To &#39;Neutral&#39; Zone As Nasdaq Falls For 4th Session </a>

Key Tronic Corporation shares are trading lower after the company reported Q4 financial results and issued Q1 2024 guidance.

Key Tronic GAAP EPS of $0.10, revenue of $145.4M

Key Tronic Corporation (KTCC) Q2 2024 Earnings Call Transcript

Increased investments in digitization and the adoption of newer technologies are boosting the technology industry's growth prospects. Therefore, investors could consider buying fundamentally strong tech stocks such as NetScout Systems (NTCT), Universal Electronics (UEIC), and Key Tronic (KTCC) as they are trading at a discount and are attracting the attention of smart money. Read on... The long-term outlook for the technology sector looks bright as demand for advanced technologies grows, along with the rise in IT spending and the advances in artificial intelligence and cloud computing. Moreover, the expected interest rate cuts later this year will benefit the tech sector.
Against this backdrop, investors could follow the footsteps of smart money by buying fundamentally strong value tech stocks such as NetScout Systems, Inc. (<a href="https://stocknews.com/stock/NTCT/">NTCT</a>), Universal Electronics Inc. (<a href="https://stocknews.com/stock/UEIC/">UEIC</a>), and Key Tronic Corporation (<a href="https://stocknews.com/stock/KTCC/">KTCC</a>). Before delving deeper into their fundamentals, let's discuss what's shaping the tech industry's prospects.
Smart money refers to institutional investors and hedge funds. Due to their access to insightful research, information, and expertise, retail investors often track smart money. Investors should closely monitor smart money's interest in the above-mentioned stocks as they usually focus on companies with solid growth potential.
The NASDAQ Composite's 32.1% rise over the past year reflects investor confidence and optimism about the future of technology companies. According to Gartner, Inc.'s most recent report, worldwide IT spending will reach <a href="https://www.gartner.com/en/newsroom/press-releases/2024-04-16-gartner-forecast-worldwide-it-spending-to-grow-8-percent-in-2024">$5.06 trillion</a> in 2024, up 8% from 2023.
John-David Lovelock, Distinguished VP Analyst at Gartner, said: "With spending on IT services on track to grow by 9.7% to eclipse $1.52 trillion, this category is on pace to become the largest market that Gartner tracks."
The demand for tech services is fueled by digital transformation, cloud adoption, business intelligence, increased demand for data security and privacy protection, and companies' emphasis on cost-effectiveness. The global IT services industry is expected to grow at a <a href="https://www.statista.com/outlook/tmo/it-services/worldwide">CAGR of 5.8%</a> to $1.88 trillion until 2029.
Moreover, the use of advanced electronic components such as sensors and switches in devices is growing owing to greater interconnectivity between devices and the rise of smart and interactive devices. The global electronics industry is predicted to increase at a <a href="https://www.precedenceresearch.com/electronic-components-market">6.8% CAGR</a>, reaching $368.40 billion by 2032.
Moreover, investors' interest in tech stocks is evident from the iShares U.S. Technology ETF (<a href="https://stocknews.com/stock/IYW/">IYW</a>) 44.7% returns over the past year.
Considering these conducive trends, let's examine the fundamentals of the three featured tech stocks.
NetScout Systems, Inc. (<a href="https://stocknews.com/stock/NTCT/">NTCT</a>)
NTCT provides service assurance and cybersecurity solutions to protect digital business services against disruptions in the U.S., Europe, Asia, and internationally. NTCT has <a href="https://www.nasdaq.com/market-activity/stocks/ntct/institutional-holdings">institutional ownership of approximately 91.7%</a>.
In terms of forward EV/Sales, NTCT is trading at 1.49x, 45.9% lower than the industry average of 2.75x. Likewise, its forward non-GAAP P/E of 9.26x is 60.1% lower than the 23.21x industry average. Also, its forward EV/EBITDA of 7.73x is 47% lower than the 14.59x industry average.
In terms of the trailing-12-month gross profit margin, NTCT's 77.46% is 58.9% higher than the 48.75% industry average. Likewise, its trailing-12-month EBIT margin and <a href="https://www.investopedia.com/terms/e/ebitda-margin.asp">EBITDA margin</a> of 6.30% and 15.72% are 47.9% and 66.8% higher than the industry averages of 4.26% and 9.42%, respectively.
NTCT reported total revenue for the third quarter that ended December 31, 2023, to $218.07 million. Its non-GAAP gross profit stood at $178.46 million. The company's non-GAAP net income and net income per share stood at $52.03 million and $0.73, respectively.
Its total current liabilities came in at $382.25 million for the period that ended December 31, 2023, compared to $453.61 million for the period that ended March 31, 2023.
For the quarter that ended March 31, 2024, NTCT's revenue and EPS are expected to increase 2.8% and 36.8% year-over-year to $213.90 million and $0.52, respectively. The company surpassed the consensus revenue and EPS estimates in three of the trailing four quarters, which is impressive. The stock has declined marginally intraday to close the last trading session at $20.09.
NTCT's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. It has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
NTCT has a B grade for Growth, Value, and Sentiment. Within the <a href="https://stocknews.com/category/technology-services/">Technology - Services</a> industry, it is ranked #12 out of 78 stocks. To see NTCT's additional Momentum, Stability, and Quality ratings, <a href="https://stocknews.com/stock/NTCT/">click here</a>.
Universal Electronics Inc. (<a href="https://stocknews.com/stock/UEIC/">UEIC</a>)
UEIC designs, develops, manufactures, ships, and supports control and sensor technology solutions in the U.S., the People's Republic of China, the rest of Asia, Europe, Latin America, and internationally. UEIC has <a href="https://www.nasdaq.com/market-activity/stocks/ueic/institutional-holdings">institutional ownership of approximately 64.2%</a>.
On January 11, UEIC announced the release of its latest QuickSet solution, expanding content discovery, control, and interaction across millions of devices and households.
The newest release of QuickSet expanded functionality for entertainment and whole-home audio use cases to provide deeper device and content history across an ever-increasing landscape of devices and services at home.
In terms of forward EV/Sales, UEIC is trading at 0.44x, 62.9% lower than the industry average of 1.18x. Likewise, its forward EV/EBITDA of 7.59x is 19.6% lower than the 9.44x industry average. Also, its forward Price/Sales of 0.36x is 58.8% lower than the 0.88x industry average.
UEIC's trailing-12-month asset turnover ratio of 1.09x is 10.2% higher than the industry average of 0.99x. Additionally, its 10.37% trailing-12-month levered FCF margin is 83.1% higher than the industry average of 5.66%.
For the fiscal first quarter that ended March 31, 2024, UEIC's net sales and non-GAAP gross profit amounted to $91.90 million and $27.23 million, respectively. In addition, its cash and cash equivalents at end of period stood at $26.91 million. As of March 31, 2024, UEIC's total current liabilities amounted to $138.67 million, compared to $161.15 million as of December 31, 2023.
Street expects UEIC's EPS and revenue for the quarter ending September 30, 2024, to increase 166.7% and 1.5% year-over-year to $0.21 and $108.69 million, respectively. The company surpassed consensus EPS estimates in each of the trailing four quarters. Over the past three months, UEIC's stock has gained 30.8% to close the last trading session at $11.22.
It's no surprise that UEIC has an overall B rating, equating to Buy in our POWR Ratings system.
It has a B grade for Value and Sentiment. It is ranked #8 out of 42 stocks in the <a href="https://stocknews.com/category/technology-electronics/">Technology - Electronics</a> industry. Beyond what is stated above, we've also rated UEIC for Growth, Momentum, Stability, and Quality. Get all UEIC ratings <a href="https://stocknews.com/stock/UEIC/">here</a>.
Key Tronic Corporation (<a href="https://stocknews.com/stock/KTCC/">KTCC</a>)
KTCC provides contract manufacturing services to original equipment manufacturers in the U.S. and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Institutions own approximately <a href="https://www.nasdaq.com/market-activity/stocks/ktcc/institutional-holdings">40.7% shares of KTCC</a>.
In terms of trailing-12-month EV/EBIT, KTCC is trading at 0.30x, 90.3% lower than the industry average of 3.04x. Likewise, its trailing-12-month EV/Sales of 0.30x, 90.3% lower than the 3.04x industry average. Also, its trailing-12-month Price/Sales of 0.08x is 97.4% lower than the 2.89x industry average.
In terms of the trailing-12-month asset turnover ratio, KTCC's 1.53x is 154.6% higher than the 0.60x industry average. Its trailing-12-month Return on Common Equity and Return on Total Capital of 3.43% and 3.58% are 19.6% and 57.8% higher than the industry average of 2.87% and 2.27%, respectively.
During the second quarter, which ended December 30, 2023, KTCC's net sales rose 17.5% year-over-year to $145.42 million. Its gross profit increased 31.9% from the prior-year quarter to $11.76 million. In addition, its operating income was $3.95 million, up 9.4% year-over-year.
For the same quarter, the company's net income and net income per share rose 12.1% and 11.1% from the year-ago value to $1.08 million and $0.10, respectively.
The stock has gained 10.1% over the past six months to close the last trading session at $4.36.
KTCC's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, equating to a Buy in our proprietary rating system.
It has an A grade for Growth and Momentum and a B for Value, Stability, and Sentiment. It is ranked #11 in the Technology - Services industry. <a href="https://stocknews.com/stock/KTCC/">Click here</a> to see KTCC's rating for Quality.
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<hr />
NTCT shares were trading at $20.04 per share on Monday morning, down $0.05 (-0.25%). Year-to-date, NTCT has declined -8.70%, versus a 8.51% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rashmi Kumari</h2> <img src='https:/wp-content/uploads/2022/10/Rashmi-Kumari_headshot_2-1.jpg' style="float:left; padding:5px;width:125px;">Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.<a href="https://stocknews.com/authors/?author=rashmi-kumari">More...</a>The post <a href=https://stocknews.com/news/ntct-ueic-ktcc-3-value-tech-stocks-smart-money-is-chasing/>3 Value Tech Stocks Smart Money Is Chasing</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Value Tech Stocks Smart Money Is Chasing

Key Tronic GAAP EPS of -$0.21, revenue of $140.5M

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Key Tronic (NASDAQ:<a href="https://investorplace.com/stock-quotes/ktcc-stock-quote/">KTCC</a>) just reported results for the third quarter of 2024.<ul><li>Key Tronic reported earnings per share of -21 cents.</li><li>The company reported revenue of $140.53 million.</li></ul><div>InvestorPlace Earnings is a project that leverages data from <a href="https://www.tradesmith.com">TradeSmith</a> to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at <a href="mailto:editor@investorplace.com">editor@investorplace.com</a>.</div><h3>More From InvestorPlace</h3>
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	The post <a href="https://investorplace.com/earning-results/2024/05/ktcc-stock-earnings-key-tronic-for-q3-of-2024/">KTCC Stock Earnings: Key Tronic Reported Results for Q3 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

KTCC Stock Earnings: Key Tronic Reported Results for Q3 2024

Key Tronic Corporation (KTCC) Q3 2024 Earnings Call Transcript

Key Tronic Non-GAAP EPS of $0.10, revenue of $125.69M

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Key Tronic (NASDAQ:<a href="https://investorplace.com/stock-quotes/ktcc-stock-quote/">KTCC</a>) just reported results for the fourth quarter of 2024.<ul><li>Key Tronic reported earnings per share of 10 cents.</li><li>The company reported revenue of $125.69 million.</li></ul><div>InvestorPlace Earnings is a project that leverages data from <a href="https://www.tradesmith.com">TradeSmith</a> to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at <a href="mailto:editor@investorplace.com">editor@investorplace.com</a>.</div><h3>More From InvestorPlace</h3>
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KTCC Stock Earnings: Key Tronic Reported Results for Q4 2024

Key Tronic Corporation (KTCC) Q4 2024 Earnings Call Transcript

An update from Key Tronic ( ($KTCC) ) is now available. Key Tronic Corporation has set its fiscal 2025 incentive compensation plan, with bonuses ti...

Key Tronic Sets Incentive Plan and Rewards for Top Executives

NTCT

UEIC

Press Releases

Key Tronic Corporation Announces Leadership Succession Plans

Key Tronic Corporation Announces Second Quarter Reporting Date

Key Tronic Corporation Announces Results for the Second Quarter of Fiscal Year 2024

Key Tronic Corporation Announces Third Quarter Reporting Date

Key Tronic Corporation Announces Preliminary Results for the Third Quarter of Fiscal Year 2024

Key Tronic Corporation Announces Results For the Third Quarter of Fiscal Year 2024

Key Tronic Corporation Announces Consulting Arrangement With Craig D. Gates

Key Tronic Corporation Announces Preliminary Results for the Fourth Quarter of Fiscal Year 2024

Key Tronic Corporation Announces Fourth Quarter Reporting Date

Key Tronic Corporation Announces Results for the Fourth Quarter of Fiscal Year 2024

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Key Tronic

Key Tronic (KTCC) Forecast

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