Kimball Electronics (KE) Reports Q4: Everything You Need To Know Ahead Of Earnings

StockStory
02-03
Kimball Electronics (KE) Reports Q4: Everything You Need To Know Ahead Of Earnings

Global electronics contract manufacturer Kimball Electronics (NYSE:KE) will be reporting results tomorrow afternoon. Here’s what you need to know.

Kimball Electronics met analysts’ revenue expectations last quarter, reporting revenues of $374.3 million, down 14.6% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA and EPS 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 14.5% year on year to $360.1 million, a further deceleration from the 3.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.

Analysts covering the company have generally 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 five times over the last two years.

Looking at Kimball Electronics’s peers in the electrical systems segment, some have already reported their Q4 results, giving us a hint as to what we can expect. LSI delivered year-on-year revenue growth of 35.5%, beating analysts’ expectations by 14.3%, and OSI Systems reported revenues up 12.5%, topping estimates by 3.3%. LSI traded up 11.7% following the results while OSI Systems was also up 18.4%.

Read our full analysis of LSI’s results here and OSI Systems’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 is down 3% during the same time and is heading into earnings with an average analyst price target of $24 (compared to the current share price of $18.21).

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