Global electronics contract manufacturer Kimball Solutions (NASDAQ: KE) will be reporting earnings this Wednesday after market close. Here’s what to look for.
Kimball Solutions met analysts’ revenue expectations last quarter, reporting revenues of $371.6 million, down 2.3% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.
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 grow 5.9% year on year, a reversal from the 2.3% 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 Q3 results, giving us a hint as to what we can expect. Vertiv delivered year-on-year revenue growth of 61.2%, beating analysts’ expectations by 14.5%, and GE Vernova reported revenues up 26.8%, topping estimates by 5.2%. Vertiv traded up 17.7% following the results while GE Vernova’s stock price was unchanged.
Read our full analysis of Vertiv’s results here and GE Vernova’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 Solutions is down 6.9% during the same time and is heading into earnings with an average analyst price target of $33.50 (compared to the current share price of $26.29).
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