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Knowles (KN) Q2 Earnings Report Preview: What To Look For

KN Cover Image

Electronic components manufacturer Knowles (NYSE: KN) will be reporting results this Thursday after market hours. Here’s what investors should know.

Knowles beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $132.2 million, down 32.7% year on year. It was an exceptional quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS guidance for next quarter estimates.

Is Knowles a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Knowles’s revenue to decline 31.7% year on year to $139.8 million, a reversal from the 18.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.

Knowles Total Revenue

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. Knowles has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Knowles’s peers in the tech hardware & electronics segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Jabil delivered year-on-year revenue growth of 15.7%, beating analysts’ expectations by 11.2%, and TD SYNNEX reported revenues up 7.2%, topping estimates by 4.4%. Jabil traded up 13.1% following the results while TD SYNNEX was also up 7.9%.

Read our full analysis of Jabil’s results here and TD SYNNEX’s results here.

There has been positive sentiment among investors in the tech hardware & electronics segment, with share prices up 5.1% on average over the last month. Knowles is up 5.3% during the same time and is heading into earnings with an average analyst price target of $20.75 (compared to the current share price of $18.45).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

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