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Kimball Electronics Gears Up to Report Q2 Earnings: What to Expect?

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Key Takeaways

  • Kimball Electronics will report Q2 results Feb. 4, with sales seen down 4.2% year over year.
  • KE's expanding medical manufacturing footprint is expected to support performance in the quarter.
  • Softness across the automotive and industrial segments may weigh on overall results.

Kimball Electronics, Inc. (KE - Free Report) is scheduled to report second-quarter fiscal 2026 results on Feb. 4, after market close.

The Zacks Consensus Estimate for sales is pegged at $342.5 million, indicating a 4.2% decline from the prior-year quarter’s reported figure.

The consensus mark for earnings is pegged at 28 cents per share, suggesting a year-over-year decline of 3.5%.

Kimball Electronics’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 49.71%.

Let’s see how things might have shaped up prior to the announcement.

Kimball Electronics, Inc. Price and EPS Surprise

Kimball Electronics, Inc. Price and EPS Surprise

Kimball Electronics, Inc. price-eps-surprise | Kimball Electronics, Inc. Quote

Factors Likely to Influence KE’s Q2 Results

Kimball Electronics’ second-quarter numbers are likely to reflect benefits from its focus on expanding in the high-growth medical contract manufacturing space. The new 300,000 sq. ft. facility in Indianapolis has positioned KE as a key player in the medical product manufacturing domain.

Steady demand for medical devices due to a rise in the aging population, growing access to healthcare and connected drug-delivery systems, combined with the miniaturization of medical devices, has been driving the demand for medical products. With its enhanced production capacity, Kimball Electronics is anticipated to have capitalized on this opportunity during the to-be-reported quarter.

Kimball Electronics is also bringing operational improvements and cost discipline by reducing inventory, cash conversion cycle, and selling, general & administrative expenses. The company has also reduced its debts significantly, which helped lower its interest expenses. These factors are likely to have positively impacted the bottom line in the to-be-reported quarter.

However, industry-wide softness across the automotive and industrial segments is expected to have more than offset the benefits of strong performance in the medical division. Heavy dependence on a few large medical and automotive customers is an added concern for the company.

Earnings Whispers for Kimball Electronics Stock

Our proven model does not conclusively predict an earnings beat for KE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Though Kimball Electronics carries a Zacks Rank #3, it has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:

Microchip Technology Incorporated (MCHP - Free Report) has an Earnings ESP of +2.18% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Microchip Technology is set to report third-quarter fiscal 2026 results on Feb. 5. The Zacks Consensus Estimate for MCHP’s third-quarter earnings is pegged at $1.51 per share. The estimate has moved north 6 cents over the past 30 days, indicating an increase of 15.3% from the year-ago quarter’s reported figure.

Lattice Semiconductor Corporation (LSCC - Free Report) has an Earnings ESP of +3.67% and a Zacks Rank #2 at present.

Lattice Semiconductor is set to report fourth-quarter 2025 results on Feb. 10. The Zacks Consensus Estimate for LSCC’s fourth-quarter earnings is pegged at $1.05 per share, unchanged over the past 60 days, indicating an increase of 16.7% from the year-ago quarter’s reported figure.

Cloudflare Inc. (NET - Free Report) has an Earnings ESP of +0.20% and a Zacks Rank #3 at present.

Cloudflare is slated to report fourth-quarter 2025 results on Feb. 10. The Zacks Consensus Estimate for NET’s fourth-quarter earnings is pegged at 92 cents per share, revised upward by a penny over the past 30 days, indicating a rise of 22.7% from the year-ago quarter’s reported figure.

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