Global electronics contract manufacturer Kimball Electronics (NASDAQ:KE) will be reporting results this Tuesday after market hours. Here’s what to look for.
Kimball Electronics beat analysts’ revenue expectations last quarter, reporting revenues of $341.3 million, down 4.5% year on year. It was an exceptional quarter for the company, with an impressive 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, the market is expecting Kimball Electronics’s revenue to decline 4.9% year on year, improving from the 11.9% decrease it recorded in the same quarter last year.
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. Kimball Electronics has missed Wall Street’s revenue estimates multiple 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. LSI delivered year-on-year revenue growth of 13.6%, beating analysts’ expectations by 9%, and Garrett Motion reported revenues up 12.2%, topping estimates by 9.3%. LSI traded up 6.7% following the results while Garrett Motion was also up 26.3%.
Read our full analysis of LSI’s results here and Garrett Motion’s results here.
There has been positive sentiment among investors in the electrical systems segment, with share prices up 9.4% on average over the last month. Kimball Electronics is up 14% during the same time and is heading into earnings with an average analyst price target of $33 (compared to the current share price of $27.21).
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