KTCC Nasdaq· Key Tronic Corporation
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KTCC Nasdaq· Key Tronic Corporation
Earnings report Q4 2023

Key Tronic Corporation Reports Strong Revenue Growth in Q2 FY2024

Segments of revenue

Key Tronic Corporation reported total revenue of $145.4 million for the second quarter of fiscal year 2024, representing a significant increase of 17.5 percent compared to the same period in the prior fiscal year. This growth was primarily driven by increased production at the company's US-based and Vietnam-based facilities, as well as the sale of approximately $8.1 million of inventory from a discontinued program.


Key Tronic Corporation demonstrated strong revenue growth in the latest quarter, outperforming the same period in the previous fiscal year. The successful ramp of new customer programs and increased component sales for a large customer contributed to the $21.7 million increase in net sales. Additionally, the company's focus on producing high-quality products and fostering long-term mutually beneficial business relationships has helped drive revenue growth. Management expects the concentration of top three customers' net sales to decrease throughout the fiscal year, indicating a diversified customer base.


Despite the strong revenue growth, Key Tronic Corporation faced challenges due to tightening worldwide supply chain and transportation and logistics issues. These constraints impacted the company's revenue potential and may continue to pose challenges in the future.


The gross profit margin for the second quarter of fiscal year 2024 improved to 8.1 percent compared to 7.2 percent in the same period of the prior fiscal year. This improvement was primarily attributed to a temporary holiday closure of the Juarez production facility, sales of obsolete inventory, and increased labor costs. The company's gross profit margin was also influenced by facility utilization, product mix, and the timing and severity of new program ramps.


Key Tronic Corporation delivered a strong performance in the latest quarter, with a notable increase in revenue driven by increased production and successful customer programs. The company's focus on high-quality products and building long-term relationships has contributed to its growth. However, challenges related to the global supply chain and logistics may impact future performance. Overall, Key Tronic Corporation's strong revenue growth and improved gross profit margin position it well for future success.

Source documents

Form 10-Q  filed on Feb 08, 2024
121 pages scanned

Reference data

Company financials Q4 revenue 141M
Analyst estimates Q4 EPS missed by NaN%
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