Key Tronic Corp. (KTCC) announced on Friday that its preliminary second-quarter results fell short of previously issued guidance, showing lower-than-expected revenue and earnings. The contract manufacturer estimates its quarterly revenue to be approximately $114 million, with earnings ranging from $0.40 to $0.48 per share.
The company attributed these declines primarily to unforeseen component shortages, decreased production during the holiday season, and diminished demand from select clients.
Looking ahead, Key Tronic anticipates a rebound in the third quarter. The company forecasts revenue between $115 million and $130 million and earnings in the range of $0.00 to $0.15 per share. In preparation for improved performance, Key Tronic plans to streamline operations and reduce workforce to boost efficiency.
Currently, Key Tronic shares are priced at $3.94 on the Nasdaq, reflecting a 5.51 percent decrease.
