Knowles (KN) Q4 Earnings Report Preview: What To Look For

StockStory
02-12
Knowles (KN) Q4 Earnings Report Preview: What To Look For

Acoustic component provider Knowles (NYSE:KN) will be announcing earnings results tomorrow after the bell. Here’s what investors should know.

Knowles beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $142.5 million, down 18.6% year on year. It was a strong quarter for the company, with a decent beat of analysts’ EBITDA estimates and EPS guidance for next quarter topping analysts’ expectations.

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 32.2% year on year to $146 million, a reversal from the 9.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 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. Knowles has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Knowles’s peers in the electronic components segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Belden delivered year-on-year revenue growth of 20.8%, beating analysts’ expectations by 1.7%, and Corning reported revenues up 18.4%, topping estimates by 3%. Belden’s stock price was unchanged after the results, while Corning was down 2.6%.

Read our full analysis of Belden’s results here and Corning’s results here.

Investors in the electronic components segment have had steady hands going into earnings, with share prices flat over the last month. Knowles is down 5.2% during the same time and is heading into earnings with an average analyst price target of $21.75 (compared to the current share price of $18.56).

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