Global electronics contract manufacturer Kimball Electronics (NYSE:KE) will be reporting results this Wednesday after the bell. Here’s what to expect.
Kimball Electronics beat analysts’ revenue expectations by 10.8% last quarter, reporting revenues of $374.6 million, down 11.9% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Kimball Electronics a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kimball Electronics’s revenue to decline 22.5% year on year to $333.2 million, a further deceleration from the 13.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kimball Electronics has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Kimball Electronics’s peers in the electrical systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Vertiv delivered year-on-year revenue growth of 35.1%, beating analysts’ expectations by 12%, and Allegion reported revenues up 5.8%, topping estimates by 1.5%. Vertiv traded up 2% following the results while Allegion was also up 7.2%.
Read our full analysis of Vertiv’s results here and Allegion’s results here.
Investors in the electrical systems segment have had steady hands going into earnings, with share prices flat over the last month. Kimball Electronics’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $22 (compared to the current share price of $19.74).
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