Kimball Electronics (NASDAQ:KE) Hits New 12-Month High After Strong Earnings

Key Points

• Kimball Electronics' shares reached a new 52-week high of $23.68 following an earnings report that exceeded expectations, with earnings of $0.34 per share compared to the consensus estimate of $0.20.
• The company reported revenues of $380.47 million for the quarter, significantly above analysts' expectations of $333.19 million.
• Wall Street analysts have upgraded Kimball Electronics from a "hold" to a "buy" rating, with a consensus price target of $22.75 as six analysts now view the stock positively.

Kimball Electronics, Inc. (NASDAQ:KE - Get Free Report) shares reached a new 52-week high during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $22.10 and last traded at $23.68, with a volume of 5289 shares trading hands. The stock had previously closed at $20.97.

The electronics maker reported $0.34 EPS for the quarter, beating the consensus estimate of $0.20 by $0.14. Kimball Electronics had a net margin of 1.14% and a return on equity of 5.17%. The business had revenue of $380.47 million during the quarter, compared to analysts' expectations of $333.19 million. Kimball Electronics has set its FY 2025 guidance at EPS.

Wall Street Analysts Forecast Growth

KE has been the subject of several research reports. B. Riley restated a "buy" rating on shares of Kimball Electronics in a research note on Thursday. Wall Street Zen upgraded shares of Kimball Electronics from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Finally, Lake Street Capital boosted their target price on shares of Kimball Electronics from $21.00 to $28.00 and gave the company a "buy" rating in a research note on Friday. Two equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Kimball Electronics currently has an average rating of "Buy" and an average price target of $28.00.

Hedge Funds Weigh In On Kimball Electronics

Several hedge funds have recently added to or reduced their stakes in the stock. American Century Companies Inc. increased its stake in Kimball Electronics by 18.6% in the second quarter. American Century Companies Inc. now owns 698,414 shares of the electronics maker's stock valued at $13,431,000 after purchasing an additional 109,553 shares during the last quarter. Earnest Partners LLC grew its position in shares of Kimball Electronics by 10.3% during the first quarter. Earnest Partners LLC now owns 691,417 shares of the electronics maker's stock worth $11,374,000 after acquiring an additional 64,307 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of Kimball Electronics by 70.1% during the second quarter. Arrowstreet Capital Limited Partnership now owns 411,921 shares of the electronics maker's stock worth $7,921,000 after acquiring an additional 169,735 shares during the last quarter. Envestnet Asset Management Inc. grew its position in shares of Kimball Electronics by 3.2% during the second quarter. Envestnet Asset Management Inc. now owns 350,253 shares of the electronics maker's stock worth $6,735,000 after acquiring an additional 11,023 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in shares of Kimball Electronics by 34.6% during the first quarter. Charles Schwab Investment Management Inc. now owns 300,694 shares of the electronics maker's stock worth $4,946,000 after acquiring an additional 77,272 shares during the last quarter. 75.99% of the stock is currently owned by hedge funds and other institutional investors.

Kimball Electronics Trading Down 2.5%

The company has a debt-to-equity ratio of 0.27, a current ratio of 2.14 and a quick ratio of 1.24. The firm has a market capitalization of $648.02 million, a PE ratio of 39.74 and a beta of 1.22. The business's 50-day moving average price is $19.77 and its 200-day moving average price is $17.63.

About Kimball Electronics

Kimball Electronics, Inc engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications.