Global electronics contract manufacturer Kimball Electronics (NYSE:KE) will be reporting earnings tomorrow after market close. Here’s what to look for.
Kimball Electronics missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $357.4 million, down 15.2% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations.
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 20.5% year on year to $338.1 million, a further deceleration from the 12.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 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 six times over the last two years.
Looking at Kimball Electronics’s peers in the electrical systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 5.4%, beating analysts’ expectations by 2%, and Vertiv reported revenues up 24.2%, topping estimates by 5.2%. Allegion traded up 7.9% following the results while Vertiv was also up 16.8%.
Read our full analysis of Allegion’s results here and Vertiv’s results here.
There has been positive sentiment among investors in the electrical systems segment, with share prices up 13% on average over the last month. Kimball Electronics is up 10.1% during the same time and is heading into earnings with an average analyst price target of $21.25 (compared to the current share price of $14.64).
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