KTCC Stock Falls 35% as Q4 Loss Widens Y/Y Despite Revenue Rebound

Shares of Key Tronic Corporation (KTCC Quick QuoteKTCC - Free Report) have fallen 35.4% since reporting fourth-quarter fiscal 2026 results. This compares with the S&P 500 index's 0.4% return over the same period. Over the past month, the stock has lost 42.7% compared with the S&P 500's 0.7% decline. Key Tronic reported fourth-quarter fiscal 2026 revenues of $102 million, down 7.7% from $110.5 million a year earlier. Revenues rose 14% sequentially. The company posted a GAAP net loss of $34.3 million, or $3.16 per share, compared with a net loss of $3.9 million, or 36 cents per share, in the year-ago quarter. On an adjusted basis, the net loss narrowed to $2.9 million, or 26 cents per share, from $3.8 million, or 35 cents per share, a year earlier. The gross margin improved to 7.8% from 6.2%, while the adjusted gross margin increased to 8.3% from 6.2%.Key Tronic Corporation Price, Consensus and EPS SurpriseOther Key Business MetricsManagement Commentary Larsen added that Key Tronic expects revenues to rebound gradually and profitability to return in fiscal 2027. The company's Arkansas operation is expected to deliver double-digit revenue growth in fiscal 2027 as new and existing programs ramp. Management also cited substantial available capacity in its U.S. and Vietnam facilities to support future wins.Factors Influencing Headline Numbers Key Tronic recorded a $28.4-million non-cash valuation allowance against certain deferred tax assets and wrote off $8.4 million of long-term receivables tied to distressed customers, along with related legal costs. These pressures were partly offset by a $5.3-million insurance recovery connected with a roof replacement at its Mississippi facility. Cost-cutting initiatives over the past two years helped lift the gross margin despite lower year-over-year revenues and supply-chain constraints.GuidanceOther Developments Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up