Global electronics contract manufacturer Kimball Solutions (NASDAQ: KE) will be reporting earnings this Wednesday afternoon. Here’s what to look for.
Kimball Solutions missed analysts’ revenue expectations last quarter, reporting revenues of $352.9 million, down 5.8% year on year. It was a slower quarter for the company, with EPS in line with analysts’ estimates.
Is Kimball Solutions 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 Solutions’s revenue to decline 1.9% year on year, improving from the 11.6% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Kimball Solutions has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Kimball Solutions’s peers in the electrical systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Atkore delivered year-on-year revenue growth of 8.1%, beating analysts’ expectations by 4.7%, and Allegion reported revenues up 12.7%, topping estimates by 3.1%. Atkore traded up 28.2% following the results while Allegion was also up 9.6%.
Read our full analysis of Atkore’s results here and Allegion’s results here.
There has been positive sentiment among investors in the electrical systems segment, with share prices up 2.6% on average over the last month. Kimball Solutions is up 1.9% during the same time and is heading into earnings with an average analyst price target of $34.25 (compared to the current share price of $25.13).
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