Abstract

Knowles Corporation will report quarterly results on February 05, 2026 Post Market; this preview consolidates recent performance, management-proxied projections, and current analyst sentiment to outline expected revenue, margins, earnings per share, and segment dynamics ahead of the release.

Market Forecast

For the current quarter, projections indicate revenue of $156.23 million (+7.00% YoY), EBIT of $36.04 million (+12.24% YoY), and adjusted EPS of $0.35 (+24.78% YoY); formal guidance for gross profit margin and net profit margin is not disclosed in the available dataset. Precision Devices is set to anchor results given its scale in the revenue mix, with last quarter segment revenue of $88.20 million and operational execution likely to support stable conversion from sales to EBIT and cash flow. The segment with the most promising trajectory is Precision Devices, which delivered $88.20 million last quarter; segment-level YoY growth is not disclosed, but its larger share in the mix suggests it will be central to meeting the quarter’s revenue and EPS targets.

Last Quarter Review

Knowles Corporation reported revenue of $152.90 million, a gross profit margin of 46.04%, GAAP net profit attributable to the parent company of $17.40 million, a net profit margin of 11.38%, and adjusted EPS of $0.33, with revenue up 7.30% YoY and adjusted EPS up 26.92% YoY. A notable highlight was the sequential profitability rebound, with quarter-on-quarter net profit rising 123.08%, supported by a revenue beat of $3.83 million, an EBIT beat of $1.62 million, and an adjusted EPS beat of $0.02. The main business mix featured Precision Devices at $88.20 million (57.68% of revenue) and Professional Audio at $64.70 million (42.32% of revenue); segment-level YoY data was not disclosed, though the mix leaned toward higher-value Precision Devices.

Current Quarter Outlook

Main Business: Precision Devices

Precision Devices remains the largest revenue contributor and is expected to carry the quarter’s financial delivery, given last quarter’s $88.20 million and its 57.68% contribution to the group’s sales. Achieving the revenue estimate of $156.23 million will likely depend on Precision Devices sustaining stable order inflow and delivering on scheduled shipments without notable production bottlenecks. The strong prior-quarter gross profit margin of 46.04% indicates sound pricing and mix discipline; maintaining a margin trend near that zone would create leverage for EBIT, which is forecast at $36.04 million, and bolster adjusted EPS, forecast at $0.35. From a cash generation and profitability perspective, conversion rates within Precision Devices are central to earnings quality in this quarter, especially as management seeks to align cost structures with demand patterns and preserve healthy spread between unit costs and realized pricing. The segment’s consistency in execution will be a decisive element for meeting or modestly surpassing current projections.

Most Promising Business: Professional Audio

Professional Audio, at $64.70 million last quarter and 42.32% of total revenue, holds levered potential for incremental gains when volumes, product mix, and pricing improve within the quarter’s delivery window. With adjusted EPS projected at $0.35, even small mix shifts toward higher-margin audio components could contribute outsized effects on earnings compared with revenue, given the sensitivity of EPS to gross margin outcomes. The segment’s ability to align supply with anticipated demand cycles and to mitigate cost volatility in its bill of materials will be vital to preserving the aggregate margin profile inferred from the prior quarter’s 46.04%. While segment-level YoY data is not disclosed, sustained product transitions, SKU rationalization, and cost discipline can serve as practical drivers for narrowing gaps between forecasting and realized performance. If execution in audio minimizes discounting and supports value-based pricing, the segment can provide a meaningful tailwind to EBIT and contribute to the upside risk embedded in current estimates.

Key Stock Price Drivers This Quarter

Share price reaction will be most sensitive to the magnitude of revenue delivery relative to the $156.23 million estimate and the degree to which margins either hold or expand from last quarter’s levels. Adjusted EPS of $0.35 implies disciplined cost control and mix benefits; outcomes above this mark would probably signal either stronger-than-expected demand or better-than-anticipated operating leverage and procurement savings. The prior quarter’s 123.08% quarter-on-quarter net profit increase sets a momentum baseline; sustaining that trajectory into this quarter would make investors reassess earnings power and cash conversion across the portfolio. Segment mix between Precision Devices and Professional Audio will shape the gross margin profile, with Precision Devices typically anchoring stability and Professional Audio providing potential upside when product initiatives align with customer cycles. Finally, consensus sentiment—as reflected by recent buy ratings—creates a backdrop where investors will be closely tracking execution details for confirmation, particularly around EBIT of $36.04 million and adjusted EPS of $0.35 as key checkpoints.

Analyst Opinions

The collected views are unanimously bullish in the current window, reflecting a 100.00% favorable ratio. Recent commentary from recognized institutions points to constructive expectations: a buy stance was reiterated by Robert W. Baird, with analyst Tristan Gerra emphasizing growth potential and strategic transformation; Craig-Hallum, via analyst Anthony Stoss, also maintained a buy rating and highlighted operational momentum in alignment with projected quarterly improvements. The bullish narrative coheres with the quarter’s revenue estimate of $156.23 million (+7.00% YoY) and adjusted EPS forecast of $0.35 (+24.78% YoY), suggesting that analysts view current operational execution and portfolio focus as supportive of ongoing margin resilience and earnings growth. The alignment between EBIT expectations at $36.04 million (+12.24% YoY) and the trajectory of recent beats—revenue beat of $3.83 million, EBIT beat of $1.62 million, adjusted EPS beat of $0.02—reinforces the majority view that Knowles Corporation has calibrated its cost base and product mix to deliver positive variance against consensus when order cadence and shipment timing are favorable. From a risk-reward perspective, the bullish side emphasizes that sustaining gross profit near prior-quarter levels of 46.04% while meeting the revenue target can generate incremental upside to EPS and free cash flows, with Precision Devices being the anchor and Professional Audio offering optionality for mix-driven margin lift. The prevailing institutional stance underscores that execution quality—disciplined pricing, procurement efficiency, and operational throughput—will be the main validation points for the bull case this quarter, and that the company’s sequential profitability rebound strengthens the case for near-term earnings delivery aligned with current estimates.