We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Knowles (KN) Q3 Earnings & Revenues Match Estimates, Down Y/Y
Read MoreHide Full Article
Knowles Corporation (KN - Free Report) reported decent third-quarter 2020 results, wherein the top and the bottom lines matched the respective Zacks Consensus Estimate.
Net Income
On a GAAP basis, net income (from continuing operations) was $5.6 million or 6 cents per share compared with $25.4 million or 27 cents per share in the year-ago quarter. The decline was primarily caused by lower operating income.
Quarterly non-GAAP net income came in at $22.3 million or 24 cents per share compared with $35.8 million or 38 cents per share in the prior-year quarter. The bottom line matched the Zacks Consensus Estimate.
Knowles Corporation Price, Consensus and EPS Surprise
Quarterly revenues declined 12.8% year over year to $205.8 million, primarily due to challenges induced by the COVID-19 pandemic. However, the figure surpassed the company’s guidance of $185 million to $200 million.
Revenues grew 35.2% sequentially, driven by stronger-than-expected MEMS microphone demand in multiple end markets and higher-than-expected shipments into the hearing health market. The top line matched the Zacks Consensus Estimate.
Audio revenues declined 14.9% year over year to $164.8 million. The segment’s gross profit was $58.9 million compared with $77.9 million in the prior-year quarter.
Precision Devices revenues decreased 2.8% to $41 million. The segment’s gross profit was $16.7 million compared with $16 million in the year-ago quarter.
Other Details
Cost of goods sold decreased to $130.6 million from $142.3 million year over year. Overall gross profit declined to $75.2 million from $93.5 million for a margin of 36.5% and 39.6%, respectively. Total operating expenses were $61.6 million compared with $59.9 million in the prior-year quarter. Operating income came in at $13.6 million compared with $33.6 million a year ago.
Cash Flow & Liquidity
In the first nine months of 2020, Knowles generated $52.6 million of cash from operating activities. For the same period, free cash flow was $32.2 million. As of Sep 30, the company had $139.1 million in cash and cash equivalents with $213 million of long-term debt.
Q4 Outlook
Knowles has provided guidance for fourth-quarter 2020. On a continuing operations basis, the company expects non-GAAP revenues in the range of $210-$225 million. Non-GAAP gross profit margin is estimated in the range of 36-38%. Non-GAAP earnings are projected in the band of 27-33 cents per share.
Zacks Rank & Other Stocks to Consider
Currently, Knowles carries a Zacks Rank #2 (Buy) and has a VGM Score of B.
Viasat delivered a trailing four-quarter positive earnings surprise of 361.3%, on average.
Viavi delivered a trailing four-quarter positive earnings surprise of 17.5%, on average.
Harmonic delivered a trailing four-quarter positive earnings surprise of 41%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Image: Bigstock
Knowles (KN) Q3 Earnings & Revenues Match Estimates, Down Y/Y
Knowles Corporation (KN - Free Report) reported decent third-quarter 2020 results, wherein the top and the bottom lines matched the respective Zacks Consensus Estimate.
Net Income
On a GAAP basis, net income (from continuing operations) was $5.6 million or 6 cents per share compared with $25.4 million or 27 cents per share in the year-ago quarter. The decline was primarily caused by lower operating income.
Quarterly non-GAAP net income came in at $22.3 million or 24 cents per share compared with $35.8 million or 38 cents per share in the prior-year quarter. The bottom line matched the Zacks Consensus Estimate.
Knowles Corporation Price, Consensus and EPS Surprise
Knowles Corporation price-consensus-eps-surprise-chart | Knowles Corporation Quote
Revenues
Quarterly revenues declined 12.8% year over year to $205.8 million, primarily due to challenges induced by the COVID-19 pandemic. However, the figure surpassed the company’s guidance of $185 million to $200 million.
Revenues grew 35.2% sequentially, driven by stronger-than-expected MEMS microphone demand in multiple end markets and higher-than-expected shipments into the hearing health market. The top line matched the Zacks Consensus Estimate.
Audio revenues declined 14.9% year over year to $164.8 million. The segment’s gross profit was $58.9 million compared with $77.9 million in the prior-year quarter.
Precision Devices revenues decreased 2.8% to $41 million. The segment’s gross profit was $16.7 million compared with $16 million in the year-ago quarter.
Other Details
Cost of goods sold decreased to $130.6 million from $142.3 million year over year. Overall gross profit declined to $75.2 million from $93.5 million for a margin of 36.5% and 39.6%, respectively. Total operating expenses were $61.6 million compared with $59.9 million in the prior-year quarter. Operating income came in at $13.6 million compared with $33.6 million a year ago.
Cash Flow & Liquidity
In the first nine months of 2020, Knowles generated $52.6 million of cash from operating activities. For the same period, free cash flow was $32.2 million. As of Sep 30, the company had $139.1 million in cash and cash equivalents with $213 million of long-term debt.
Q4 Outlook
Knowles has provided guidance for fourth-quarter 2020. On a continuing operations basis, the company expects non-GAAP revenues in the range of $210-$225 million. Non-GAAP gross profit margin is estimated in the range of 36-38%. Non-GAAP earnings are projected in the band of 27-33 cents per share.
Zacks Rank & Other Stocks to Consider
Currently, Knowles carries a Zacks Rank #2 (Buy) and has a VGM Score of B.
Some other top-ranked stocks in the broader industry are Viasat (VSAT - Free Report) , Viavi Solutions (VIAV - Free Report) and Harmonic (HLIT - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Viasat delivered a trailing four-quarter positive earnings surprise of 361.3%, on average.
Viavi delivered a trailing four-quarter positive earnings surprise of 17.5%, on average.
Harmonic delivered a trailing four-quarter positive earnings surprise of 41%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>