Kimball Electronics (NASDAQ:KE) Shares Gap Down Following Weak Earnings

Key Points

• Kimball Electronics shares fell 8.1%, opening at $22.95 versus the prior close of $25.19 after the company reported disappointing quarterly results.
• The company posted an EPS loss of $0.01, missing the $0.39 analyst consensus by $0.40, while revenue of $371.57 million came in slightly below the $373.36 million estimate.
• Despite mixed analyst actions, Kimball Electronics retains a “Moderate Buy” consensus rating with a $32.00 target price; institutional investors own approximately 75.99% of the stock.

Kimball Electronics, Inc. (NASDAQ:KE - Get Free Report)'s share price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $25.19, but opened at $22.95. Kimball Electronics shares last traded at $23.5050, with a volume of 32,009 shares.

The electronics maker reported ($0.01) EPS for the quarter, missing analysts' consensus estimates of $0.39 by ($0.40). Kimball Electronics had a return on equity of 6.22% and a net margin of 1.81%.The company had revenue of $371.57 million for the quarter, compared to analysts' expectations of $373.36 million.

Analyst Ratings Changes

Several research firms have weighed in on KE. KeyCorp began coverage on shares of Kimball Electronics in a report on Thursday, July 2nd. They issued a "sector weight" rating on the stock. Wall Street Zen lowered Kimball Electronics from a "buy" rating to a "hold" rating in a research report on Saturday, July 4th. Zacks Research upgraded Kimball Electronics from a "hold" rating to a "strong-buy" rating in a report on Monday, July 6th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Kimball Electronics in a report on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Kimball Electronics presently has a consensus rating of "Moderate Buy" and a consensus target price of $32.00.

Hedge Funds Weigh In On Kimball Electronics

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Royal Bank of Canada lifted its position in shares of Kimball Electronics by 5.8% during the first quarter. Royal Bank of Canada now owns 29,199 shares of the electronics maker's stock worth $480,000 after purchasing an additional 1,588 shares in the last quarter. AQR Capital Management LLC increased its stake in Kimball Electronics by 24.0% during the 1st quarter. AQR Capital Management LLC now owns 259,734 shares of the electronics maker's stock worth $4,273,000 after buying an additional 50,245 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Kimball Electronics by 4.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,687 shares of the electronics maker's stock worth $242,000 after buying an additional 624 shares in the last quarter. Empowered Funds LLC lifted its holdings in Kimball Electronics by 8.3% during the 1st quarter. Empowered Funds LLC now owns 88,650 shares of the electronics maker's stock worth $1,458,000 after buying an additional 6,803 shares in the last quarter. Finally, Jane Street Group LLC purchased a new position in Kimball Electronics in the 1st quarter valued at approximately $411,000. 75.99% of the stock is currently owned by hedge funds and other institutional investors.

Kimball Electronics Trading Down 8.1%

The company's 50 day simple moving average is $25.13 and its 200 day simple moving average is $25.41. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.11 and a quick ratio of 1.29. The firm has a market cap of $556.73 million, a price-to-earnings ratio of 22.26, a P/E/G ratio of 1.12 and a beta of 1.23.

Kimball Electronics Company Profile

Kimball Electronics, Inc is a global electronic manufacturing services (EMS) provider headquartered in Jasper, Tennessee. The company offers end-to-end product design and manufacturing solutions, serving original equipment manufacturers (OEMs) across a range of industries. With a focus on precision electronics and complex assemblies, Kimball Electronics leverages advanced engineering capabilities, quality systems and lean production methods to support customers from product concept through full-scale production.

The company's core offerings include printed circuit board assembly (PCBA), system integration, tooling and test fixture development, and aftermarket services.

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