Global electronics contract manufacturer Kimball Electronics (NYSE: KE) will be reporting earnings this Wednesday after market hours. Here’s what to expect.
Kimball Electronics beat analysts’ revenue expectations by 14.2% last quarter, reporting revenues of $380.5 million, down 11.6% year on year. It was an exceptional quarter for the company, with a 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 for active Edge members.
This quarter, analysts are expecting Kimball Electronics’s revenue to decline 9.6% year on year to $338.4 million, improving from the 14.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 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 twice since going public.
Looking at Kimball Electronics’s peers in the electrical systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Vertiv delivered year-on-year revenue growth of 29%, beating analysts’ expectations by 3.4%, and Verra Mobility reported revenues up 16.1%, topping estimates by 9.8%. Vertiv traded up 4.6% following the results while Verra Mobility was down 1.3%.
Read our full analysis of Vertiv’s results here and Verra Mobility’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 up 1.4% during the same time and is heading into earnings with an average analyst price target of $29.75 (compared to the current share price of $29.09).
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